|
|
|
||||||||||
| (State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | ||||||||||
|
|
|
||||
| (Registrant's Telephone Number, Including Area Code) | |||||
| Title of each class | Trading Symbol (s) | Name of each exchange on which registered | ||||||||||||
|
|
|
|
||||||||||||
|
|
|
|
||||||||||||
|
|
☒ |
Accelerated filer
¨
|
|||||||||
|
Non-accelerated filer
¨
|
Smaller reporting company |
|
|||||||||
| Emerging growth company |
|
||||||||||
| SELECTIVE INSURANCE GROUP, INC. | ||||||||
| Table of Contents | ||||||||
| Page No. | ||||||||
| PART I | ||||||||
| Item 1. | ||||||||
| Item 1A. | ||||||||
| Item 1B. | ||||||||
| Item 2. | ||||||||
| Item 3. | ||||||||
| PART II | ||||||||
| Item 5. | ||||||||
| Item 6. | ||||||||
| Item 7. | ||||||||
| Item 7A. | ||||||||
| Item 8. | ||||||||
| December 31, 2020, 2019, and 2018 | ||||||||
| December 31, 2020, 2019, and 2018 | ||||||||
| December 31, 2020, 2019, and 2018 | ||||||||
| December 31, 2020, 2019, and 2018 | ||||||||
| Item 9. | ||||||||
| Item 9A. | ||||||||
| PART III | ||||||||
| Item 10. | ||||||||
| Item 11. | ||||||||
| Item 12. | ||||||||
| Item 13. | ||||||||
| Item 14. | ||||||||
| PART IV | ||||||||
| Item 15. | ||||||||
| NRSRO | Financial Strength Rating | Outlook | ||||||||||||
| AM Best | A | Positive | ||||||||||||
| Standard & Poor’s Global Ratings (“S&P”) | A | Stable | ||||||||||||
| Moody’s Investors Services (“Moody’s”) | A2 | Stable | ||||||||||||
| Fitch Ratings (“Fitch”) | A+ | Stable | ||||||||||||
| NRSRO | Credit Rating | Long-Term Credit Outlook | ||||||||||||
| AM Best | bbb+ | Positive | ||||||||||||
| S&P | BBB | Stable | ||||||||||||
| Moody’s | Baa2 | Stable | ||||||||||||
| Fitch | BBB+ | Stable | ||||||||||||
| Types of Policies | Category of Insurance | Standard Commercial Lines | Standard Personal Lines | E&S Lines | |||||||||||||
| Commercial Property (including Inland Marine) | Property | X | X | ||||||||||||||
| Commercial Automobile | Property/Casualty | X | X | ||||||||||||||
| General Liability (including Excess Liability/Umbrella) | Casualty | X | X | ||||||||||||||
| Workers Compensation | Casualty | X | |||||||||||||||
| Businessowners' Policy | Property/Casualty | X | |||||||||||||||
| Bonds (Fidelity and Surety) | Casualty | X | |||||||||||||||
| Homeowners | Property/Casualty | X | |||||||||||||||
| Personal Automobile | Property/Casualty | X | |||||||||||||||
| Personal Umbrella | Casualty | X | |||||||||||||||
|
Flood
1
|
Property | X | X | ||||||||||||||
| Percentage of Standard Commercial Lines | Description | |||||||||||||
| Contractors | 42% | General contractors and trade contractors | ||||||||||||
| Mercantile and Services | 25% | Retail, office, lessors risk/property owners, automobile services and golf courses | ||||||||||||
| Community and Public Services | 16% | Public entities, social services, religious institutions, and schools | ||||||||||||
| Manufacturing and Wholesale | 16% | Manufacturers, wholesalers, and distributors | ||||||||||||
| Bonds | 1% | Fidelity and surety | ||||||||||||
| Total Standard Commercial Lines | 100% | |||||||||||||
| Property | Casualty | |||||||
| Standard Commercial Lines | 78% |
87%
1
|
||||||
| Standard Personal Lines | 84% | 98% | ||||||
| E&S Lines | 97% | 98% | ||||||
| Region | Office Location | |||||||
| Heartland | Indianapolis, Indiana | |||||||
| New Jersey | Hamilton, New Jersey | |||||||
| Northeast | Branchville, New Jersey | |||||||
| Mid-Atlantic | Allentown, Pennsylvania and Hunt Valley, Maryland | |||||||
| Southern | Charlotte, North Carolina | |||||||
| Southwest | Scottsdale, Arizona | |||||||
| (a) | (b) | (c) | |||||||||||||||||||||
| Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights |
Number of securities remaining available for future issuance
under equity compensation plans (excluding securities
reflected in column (a))
1
|
||||||||||||||||||||
| Equity compensation plans approved by security holders | — | $ | — | 4,876,140 | |||||||||||||||||||
| Period |
Total Number of Shares Purchased
1
|
Average Price Paid Per Share |
Total Number of Shares Purchased as Part of Publicly Announced Programs
2
|
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Announced Programs
2
|
||||||||||||||||||||||
| October 1 – 31, 2020 | — | $ | — | — | — | |||||||||||||||||||||
| November 1 – 30, 2020 | — | — | — | — | ||||||||||||||||||||||
| December 1 – 31, 2020 | 215 | 66.98 | — | — | ||||||||||||||||||||||
| Total | 215 | $ | 66.98 | — | $100 million | |||||||||||||||||||||
|
Five-Year Financial Highlights
1
|
||||||||||||||||||||||||||||||||||||||
| (All presentations are in accordance with Generally Accepted Accounting Principles ("GAAP") unless noted otherwise; number of weighted average shares and dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||
| Net premiums written | $ | 2,773,092 | 2,679,424 | 2,514,286 | 2,370,641 | 2,237,288 | ||||||||||||||||||||||||||||||||
| Net premiums earned | 2,681,814 | 2,597,171 | 2,436,229 | 2,291,027 | 2,149,572 | |||||||||||||||||||||||||||||||||
| Net investment income earned | 227,107 | 222,543 | 195,336 | 161,882 | 130,754 | |||||||||||||||||||||||||||||||||
|
Net realized and unrealized investment (losses) gains
2
|
(4,217) | 14,422 | (54,923) | 6,359 | (4,937) | |||||||||||||||||||||||||||||||||
| Total revenues | 2,922,274 | 2,846,491 | 2,586,080 | 2,469,984 | 2,284,270 | |||||||||||||||||||||||||||||||||
| Catastrophe losses | 215,378 | 81,001 | 88,023 | 67,299 | 59,735 | |||||||||||||||||||||||||||||||||
| Underwriting income | 136,349 | 163,993 | 121,173 | 154,336 | 151,933 | |||||||||||||||||||||||||||||||||
| Net income available to common stockholders | 246,355 | 271,623 | 178,939 | 168,826 | 158,495 | |||||||||||||||||||||||||||||||||
| Comprehensive income | 384,791 | 431,329 | 105,832 | 204,946 | 151,970 | |||||||||||||||||||||||||||||||||
| Total assets | 9,687,913 | 8,797,150 | 7,952,729 | 7,686,431 | 7,355,848 | |||||||||||||||||||||||||||||||||
| Long-term debt | 550,743 | 550,597 | 439,540 | 439,116 | 438,667 | |||||||||||||||||||||||||||||||||
| Stockholders’ equity | 2,738,889 | 2,194,936 | 1,791,802 | 1,712,957 | 1,531,370 | |||||||||||||||||||||||||||||||||
| Statutory premiums to surplus ratio | 1.30 | x | 1.39 | 1.42 | 1.42 | 1.41 | ||||||||||||||||||||||||||||||||
| Combined ratio | 94.9 | % | 93.7 | 95.0 | 93.3 | 92.9 | ||||||||||||||||||||||||||||||||
| Impact of catastrophe losses on combined ratio | 8.0 | pts | 3.1 | 3.6 | 2.9 | 2.8 | ||||||||||||||||||||||||||||||||
| Invested assets per dollar of common stockholders' equity | $ | 2.96 | 3.05 | 3.33 | 3.32 | 3.50 | ||||||||||||||||||||||||||||||||
| Yield on investments, after tax | 2.6 | % | 2.9 | 2.8 | 2.1 | 1.9 | ||||||||||||||||||||||||||||||||
| Debt to capitalization ratio | 16.7 | 20.1 | 19.7 | 20.4 | 22.3 | |||||||||||||||||||||||||||||||||
| Return on average common equity | 10.4 | 13.6 | 10.2 | 10.4 | 10.8 | |||||||||||||||||||||||||||||||||
|
Non-GAAP operating income
3
|
$ | 249,686 | 264,418 | 218,567 | 184,898 | 161,704 | ||||||||||||||||||||||||||||||||
|
Non-GAAP operating income per common share (diluted)
3
|
4.15 | 4.40 | 3.66 | 3.11 | 2.75 | |||||||||||||||||||||||||||||||||
|
Non-GAAP operating return on average common equity
3
|
10.5 | % | 13.3 | 12.5 | 11.4 | 11.0 | ||||||||||||||||||||||||||||||||
| Per common share data: | ||||||||||||||||||||||||||||||||||||||
| Net income available to common stockholders: | ||||||||||||||||||||||||||||||||||||||
| Basic | $ | 4.12 | 4.57 | 3.04 | 2.89 | 2.74 | ||||||||||||||||||||||||||||||||
| Diluted | 4.09 | 4.53 | 3.00 | 2.84 | 2.70 | |||||||||||||||||||||||||||||||||
| Dividends paid per common share | $ | 0.94 | 0.83 | 0.74 | 0.66 | 0.61 | ||||||||||||||||||||||||||||||||
| Book value per common share | 42.38 | 36.91 | 30.40 | 29.28 | 26.42 | |||||||||||||||||||||||||||||||||
| Price range of common stock: | ||||||||||||||||||||||||||||||||||||||
| High | 70.89 | 81.35 | 67.17 | 62.40 | 44.00 | |||||||||||||||||||||||||||||||||
| Low | 37.05 | 58.06 | 53.55 | 38.50 | 29.27 | |||||||||||||||||||||||||||||||||
| Close | 66.98 | 65.19 | 60.94 | 58.70 | 43.05 | |||||||||||||||||||||||||||||||||
| Number of weighted average common shares: | ||||||||||||||||||||||||||||||||||||||
| Basic | 59,862 | 59,421 | 58,950 | 58,458 | 57,889 | |||||||||||||||||||||||||||||||||
| Diluted | 60,293 | 60,004 | 59,713 | 59,357 | 58,747 | |||||||||||||||||||||||||||||||||
| As of December 31, 2020 | ||||||||||||||||||||||||||||||||
| Loss and Loss Expense Reserves | ||||||||||||||||||||||||||||||||
| ($ in thousands) |
Case
Reserves |
IBNR
Reserves |
Total | Reinsurance Recoverable on Unpaid Loss and Loss Expense | Net Reserves | |||||||||||||||||||||||||||
| General liability | $ | 275,133 | 1,363,508 | 1,638,641 | 215,136 | 1,423,505 | ||||||||||||||||||||||||||
| Workers compensation | 359,344 | 721,437 | 1,080,781 | 210,450 | 870,331 | |||||||||||||||||||||||||||
| Commercial automobile | 246,428 | 410,123 | 656,551 | 11,611 | 644,940 | |||||||||||||||||||||||||||
| Businessowners' policies | 39,047 | 62,517 | 101,564 | 6,849 | 94,715 | |||||||||||||||||||||||||||
| Commercial property | 60,254 | 38,228 | 98,482 | 21,760 | 76,722 | |||||||||||||||||||||||||||
| Other | 5,247 | 15,073 | 20,320 | 2,853 | 17,467 | |||||||||||||||||||||||||||
| Total Standard Commercial Lines | 985,453 | 2,610,886 | 3,596,339 | 468,659 | 3,127,680 | |||||||||||||||||||||||||||
| Personal automobile | 60,860 | 79,596 | 140,456 | 42,403 | 98,053 | |||||||||||||||||||||||||||
| Homeowners | 15,456 | 31,926 | 47,382 | 847 | 46,535 | |||||||||||||||||||||||||||
| Other | 10,498 | 30,013 | 40,511 | 29,589 | 10,922 | |||||||||||||||||||||||||||
| Total Standard Personal Lines | 86,814 | 141,535 | 228,349 | 72,839 | 155,510 | |||||||||||||||||||||||||||
|
E&S casualty lines
1
|
80,506 | 336,596 | 417,102 | 12,195 | 404,907 | |||||||||||||||||||||||||||
|
E&S property lines
2
|
9,401 | 9,164 | 18,565 | 576 | 17,989 | |||||||||||||||||||||||||||
| Total E&S Lines | 89,907 | 345,760 | 435,667 | 12,771 | 422,896 | |||||||||||||||||||||||||||
| Total | $ | 1,162,174 | 3,098,181 | 4,260,355 | 554,269 | 3,706,086 | ||||||||||||||||||||||||||
| December 31, 2019 | ||||||||||||||||||||||||||||||||
| Loss and Loss Expense Reserves | ||||||||||||||||||||||||||||||||
| ($ in thousands) |
Case
Reserves |
IBNR
Reserves |
Total | Reinsurance Recoverable on Unpaid Loss and Loss Expense | Net Reserves | |||||||||||||||||||||||||||
| General liability | $ | 247,267 | 1,269,643 | 1,516,910 | 195,830 | 1,321,080 | ||||||||||||||||||||||||||
| Workers compensation | 372,104 | 729,298 | 1,101,402 | 206,414 | 894,988 | |||||||||||||||||||||||||||
| Commercial auto | 216,358 | 408,371 | 624,729 | 14,352 | 610,377 | |||||||||||||||||||||||||||
| Businessowners' policies | 35,062 | 57,929 | 92,991 | 3,012 | 89,979 | |||||||||||||||||||||||||||
| Commercial property | 63,678 | 17,083 | 80,761 | 26,526 | 54,235 | |||||||||||||||||||||||||||
| Other | 14,213 | 5,357 | 19,570 | 9,113 | 10,457 | |||||||||||||||||||||||||||
| Total Standard Commercial Lines | 948,682 | 2,487,681 | 3,436,363 | 455,247 | 2,981,116 | |||||||||||||||||||||||||||
| Personal automobile | 68,605 | 80,445 | 149,050 | 44,104 | 104,946 | |||||||||||||||||||||||||||
| Homeowners | 13,616 | 21,713 | 35,329 | 1,182 | 34,147 | |||||||||||||||||||||||||||
| Other | 11,600 | 28,221 | 39,821 | 28,993 | 10,828 | |||||||||||||||||||||||||||
| Total Standard Personal Lines | 93,821 | 130,379 | 224,200 | 74,279 | 149,921 | |||||||||||||||||||||||||||
|
E&S casualty lines
1
|
68,042 | 328,301 | 396,343 | 14,319 | 382,024 | |||||||||||||||||||||||||||
|
E&S property lines
2
|
3,146 | 7,111 | 10,257 | 317 | 9,940 | |||||||||||||||||||||||||||
| E&S Lines | 71,188 | 335,412 | 406,600 | 14,636 | 391,964 | |||||||||||||||||||||||||||
| Total | $ | 1,113,691 | 2,953,472 | 4,067,163 | 544,162 | 3,523,001 | ||||||||||||||||||||||||||
| (Favorable)/Unfavorable Prior Year Loss and Loss Expense Development | ||||||||||||||||||||
| ($ in millions) | 2020 | 2019 | 2018 | |||||||||||||||||
| General liability | $ | (35.0) | (5.0) | (9.5) | ||||||||||||||||
| Commercial Automobile | 7.1 | 0.7 | 36.7 | |||||||||||||||||
| Workers compensation | (60.0) | (68.0) | (83.0) | |||||||||||||||||
| Businessowners' policies | 3.9 | 1.9 | (1.5) | |||||||||||||||||
| Commercial property | 9.2 | 5.1 | 7.5 | |||||||||||||||||
| Homeowners | 7.7 | 7.5 | 9.8 | |||||||||||||||||
| Personal automobile | (1.8) | 4.4 | 3.0 | |||||||||||||||||
| E&S casualty lines | — | 2.0 | 12.0 | |||||||||||||||||
| E&S property lines | (4.0) | 1.0 | (4.8) | |||||||||||||||||
| Other | — | 0.1 | (0.1) | |||||||||||||||||
| Total | $ | (72.9) | (50.3) | (29.9) | ||||||||||||||||
| Reserve Impacts of Changes to Expected Loss and Loss Expense Reporting Patterns | ||||||||||||||||||||
| ($ in millions) | Percentage Decrease/Increase | (Decrease) to Future Calendar Year Reported | Increase to Future Calendar Year Reported | |||||||||||||||||
| General liability | 10 | % | $ | (140) | $ | 140 | ||||||||||||||
| Workers compensation | 18 | (105) | 105 | |||||||||||||||||
| Commercial automobile liability | 15 | (80) | 80 | |||||||||||||||||
| Personal automobile liability | 15 | (10) | 10 | |||||||||||||||||
| E&S casualty lines | 10 | (40) | 40 | |||||||||||||||||
| Reserve Impacts of Changes to Current Year Expected Ultimate Loss and Loss Expense Ratios | ||||||||||||||||||||
| ($ in millions) | Percentage Decrease/Increase | (Decrease) to Current Accident Year Expected Loss and Loss Expense Ratio | Increase to Current Accident Year Expected Loss and Loss Expense Ratio | |||||||||||||||||
| General liability | 10 | pts | $ | (70) | $ | 70 | ||||||||||||||
| Workers compensation | 10 | (30) | 30 | |||||||||||||||||
| Commercial automobile liability | 10 | (45) | 45 | |||||||||||||||||
| Personal automobile liability | 10 | (10) | 10 | |||||||||||||||||
| E&S casualty lines | 10 | (20) | 20 | |||||||||||||||||
|
Financial Highlights of Results for Years Ended December 31, 2020, 2019, and 2018
1
|
||||||||||||||||||||||||||||||||||||||||||||
|
2020 vs.
2019 |
2019 vs.
2018 |
|||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands, except per share amounts) | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||
| Financial Data: | ||||||||||||||||||||||||||||||||||||||||||||
| Revenues | $ | 2,922,274 | 2,846,491 | 3 | % | $ | 2,586,080 | 10 | % | |||||||||||||||||||||||||||||||||||
| After-tax net investment income | 184,612 | 181,161 | 2 | 160,481 | 13 | |||||||||||||||||||||||||||||||||||||||
| After-tax underwriting income | 107,716 | 129,554 | (17) | 95,727 | 35 | |||||||||||||||||||||||||||||||||||||||
| Net income before federal income tax | 302,988 | 336,390 | (10) | 211,721 | 59 | |||||||||||||||||||||||||||||||||||||||
| Net income | 246,355 | 271,623 | (9) | 178,939 | 52 | |||||||||||||||||||||||||||||||||||||||
| Net income available to common stockholders | 246,355 | 271,623 | (9) | 178,939 | 52 | |||||||||||||||||||||||||||||||||||||||
| Key Metrics: | ||||||||||||||||||||||||||||||||||||||||||||
| Combined ratio | 94.9 | % | 93.7 | 1.2 | pts | 95.0 | % | (1.3) | pts | |||||||||||||||||||||||||||||||||||
| Invested assets per dollar of common stockholders' equity | $ | 2.96 | 3.05 | (3) | % | $ | 3.33 | (8) | % | |||||||||||||||||||||||||||||||||||
| Return on average common equity ("ROE") | 10.4 | % | 13.6 | (3.2) | pts | 10.2 | 3.4 | pts | ||||||||||||||||||||||||||||||||||||
| Statutory premiums to surplus ratio | 1.30 | x | 1.39 | (0.09) | pts | 1.42 | (0.03) | pts | ||||||||||||||||||||||||||||||||||||
| Per Common Share Amounts: | ||||||||||||||||||||||||||||||||||||||||||||
| Diluted net income per share | $ | 4.09 | 4.53 | (10) | $ | 3.00 | 51 | |||||||||||||||||||||||||||||||||||||
| Book value per share | 42.38 | 36.91 | 15 | % | 30.40 | 21 | % | |||||||||||||||||||||||||||||||||||||
| Dividends declared per share to common stockholders | 0.94 | 0.83 | 13 | 0.74 | 12 | |||||||||||||||||||||||||||||||||||||||
| Non-GAAP Information: | ||||||||||||||||||||||||||||||||||||||||||||
|
Non-GAAP operating income
2
|
$ | 249,686 | 264,418 | (6) | % | $ | 218,567 | 21 | % | |||||||||||||||||||||||||||||||||||
|
Diluted non-GAAP operating income per common share
2
|
4.15 | 4.40 | (6) | 3.66 | 20 | |||||||||||||||||||||||||||||||||||||||
|
Non-GAAP operating ROE
2
|
10.5 | % | 13.3 | (2.8) | pts | 12.5 | % | 0.8 | pts | |||||||||||||||||||||||||||||||||||
| Reconciliation of net income available to common stockholders to non-GAAP operating income | ||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
| Net income available to common stockholders | $ | 246,355 | 271,623 | 178,939 | ||||||||||||||||
| Net realized and unrealized losses (gains), before tax | 4,217 | (14,422) | 54,923 | |||||||||||||||||
| Debt retirement costs, before tax | — | 4,175 | — | |||||||||||||||||
| Tax on reconciling items | (886) | 3,042 | (15,295) | |||||||||||||||||
| Non-GAAP operating income | $ | 249,686 | 264,418 | 218,567 | ||||||||||||||||
| Reconciliation of net income available to common stockholders per diluted common share to non-GAAP operating income per diluted common share | 2020 | 2019 | 2018 | |||||||||||||||||
| Net income available to common stockholders per diluted common share | $ | 4.09 | 4.53 | 3.00 | ||||||||||||||||
| Net realized and unrealized losses (gains), before tax | 0.07 | (0.24) | 0.92 | |||||||||||||||||
| Debt retirement costs, before tax | — | 0.07 | — | |||||||||||||||||
| Tax on reconciling items | (0.01) | 0.04 | (0.26) | |||||||||||||||||
| Non-GAAP operating income per diluted common share | $ | 4.15 | 4.40 | 3.66 | ||||||||||||||||
| Reconciliation of ROE to non-GAAP operating ROE | 2020 | 2019 | 2018 | |||||||||||||||||
| ROE | 10.4 | % | 13.6 | 10.2 | ||||||||||||||||
| Net realized and unrealized losses (gains), before tax | 0.2 | (0.7) | 3.1 | |||||||||||||||||
| Debt retirement costs, before tax | — | 0.2 | — | |||||||||||||||||
| Tax on reconciling items | (0.1) | 0.2 | (0.8) | |||||||||||||||||
| Non-GAAP operating ROE | 10.5 | % | 13.3 | 12.5 | ||||||||||||||||
| ROE Components | 2020 | 2019 | Change Points | 2018 |
Change
Points |
|||||||||||||||||||||||||||
| Standard Commercial Lines Segment | 5.1 | % | 5.8 | (0.7) | 4.9 | 0.9 | ||||||||||||||||||||||||||
| Standard Personal Lines Segment | (0.5) | 0.3 | (0.8) | 0.6 | (0.3) | |||||||||||||||||||||||||||
| E&S Lines Segment | — | 0.4 | (0.4) | — | 0.4 | |||||||||||||||||||||||||||
| Total insurance operations | 4.6 | 6.5 | (1.9) | 5.5 | 1.0 | |||||||||||||||||||||||||||
| Investment income | 7.8 | 9.1 | (1.3) | 9.2 | (0.1) | |||||||||||||||||||||||||||
| Net realized and unrealized (losses) gains | (0.1) | 0.5 | (0.6) | (2.3) | 2.8 | |||||||||||||||||||||||||||
| Total investments segment | 7.7 | 9.6 | (1.9) | 6.9 | 2.7 | |||||||||||||||||||||||||||
| Debt retirement costs | — | (0.2) | 0.2 | — | (0.2) | |||||||||||||||||||||||||||
| Other | (1.9) | (2.3) | 0.4 | (2.2) | (0.1) | |||||||||||||||||||||||||||
| ROE | 10.4 | % | 13.6 | (3.2) | 10.2 | 3.4 | ||||||||||||||||||||||||||
| All Lines |
2020
vs. 2019 |
2019
vs. 2018 |
|||||||||||||||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
| Insurance Operations Results: | |||||||||||||||||||||||||||||||||||
| NPW | $ | 2,773,092 | 2,679,424 | 3 | % | $ | 2,514,286 | 7 | % | ||||||||||||||||||||||||||
| NPE | 2,681,814 | 2,597,171 | 3 | 2,436,229 | 7 | ||||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||
| Loss and loss expense incurred | 1,635,823 | 1,551,491 | 5 | 1,498,134 | 4 | ||||||||||||||||||||||||||||||
| Net underwriting expenses incurred | 905,830 | 876,567 | 3 | 808,939 | 8 | ||||||||||||||||||||||||||||||
| Dividends to policyholders | 3,812 | 5,120 | (26) | 7,983 | (36) | ||||||||||||||||||||||||||||||
| Underwriting income | $ | 136,349 | 163,993 | (17) | % | $ | 121,173 | 35 | % | ||||||||||||||||||||||||||
| Combined Ratios: | |||||||||||||||||||||||||||||||||||
| Loss and loss expense ratio | 61.0 | % | 59.7 | 1.3 | pts | 61.5 | % | (1.8) | pts | ||||||||||||||||||||||||||
| Underwriting expense ratio | 33.8 | 33.8 | — | 33.2 | 0.6 | ||||||||||||||||||||||||||||||
| Dividends to policyholders ratio | 0.1 | 0.2 | (0.1) | 0.3 | (0.1) | ||||||||||||||||||||||||||||||
| Combined ratio | 94.9 | 93.7 | 1.2 | 95.0 | (1.3) | ||||||||||||||||||||||||||||||
| ($ in millions) |
Non-Catastrophe Property
Loss and Loss Expenses |
Catastrophe Losses | ||||||||||||||||||||||||||||||
| For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Total Impact on Loss and Loss Expense Ratio | (Favorable)/Unfavorable Change in Ratio | ||||||||||||||||||||||||||
| 2020 | $ | 410.0 | 15.3 | pts | $ | 215.4 | 8.0 | pts | 23.3 | 4.4 | ||||||||||||||||||||||
| 2019 | 410.5 | 15.8 | 81.0 | 3.1 | 18.9 | (1.3) | ||||||||||||||||||||||||||
| 2018 | 405.6 | 16.6 | 88.0 | 3.6 | 20.2 | 2.1 | ||||||||||||||||||||||||||
| ($ in millions) | Favorable Prior Year Casualty Reserve Development | ||||||||||||||||
| For the year ended December 31, |
Loss and Loss
Expense Incurred |
Impact on Loss and Loss Expense Ratio | (Favorable)/Unfavorable Change in Ratio | ||||||||||||||
| 2020 | (85.0) | (3.2) | pts | (0.9) | |||||||||||||
| 2019 | (61.0) | (2.3) | (0.6) | ||||||||||||||
| 2018 | (41.5) | (1.7) | 0.4 | ||||||||||||||
| (Favorable)/Unfavorable Prior Year Casualty Reserve Development | |||||||||||||||||
| ($ in millions) | 2020 | 2019 | 2018 | ||||||||||||||
| General liability | $ | (35.0) | (5.0) | (9.5) | |||||||||||||
| Commercial automobile | 10.0 | 4.0 | 37.5 | ||||||||||||||
| Workers compensation | (60.0) | (68.0) | (83.0) | ||||||||||||||
| Businessowners' policies | — | — | (3.0) | ||||||||||||||
| Total Standard Commercial Lines | (85.0) | (69.0) | (58.0) | ||||||||||||||
| Homeowners | — | — | 1.5 | ||||||||||||||
| Personal automobile | — | 6.0 | 3.0 | ||||||||||||||
| Total Standard Personal Lines | — | 6.0 | 4.5 | ||||||||||||||
| E&S | — | 2.0 | 12.0 | ||||||||||||||
| Total (favorable) prior year casualty reserve development | $ | (85.0) | (61.0) | (41.5) | |||||||||||||
| (Favorable) impact on loss ratio | (3.2) | pts | (2.3) | (1.7) | |||||||||||||
|
2020
vs. 2019 |
2019
vs. 2018 |
||||||||||||||||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
| Insurance Segments Results: | |||||||||||||||||||||||||||||||||||
| NPW | $ | 2,230,636 | 2,137,071 | 4 | % | $ | 1,975,683 | 8 | % | ||||||||||||||||||||||||||
| NPE | 2,143,184 | 2,049,614 | 5 | 1,912,222 | 7 | ||||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||
| Loss and loss expense incurred | 1,245,627 | 1,187,856 | 5 | 1,141,038 | 4 | ||||||||||||||||||||||||||||||
| Net underwriting expenses incurred | 742,014 | 710,648 | 4 | 654,097 | 9 | ||||||||||||||||||||||||||||||
| Dividends to policyholders | 3,812 | 5,120 | (26) | 7,983 | (36) | ||||||||||||||||||||||||||||||
| Underwriting income | $ | 151,731 | 145,990 | 4 | % | $ | 109,104 | 34 | % | ||||||||||||||||||||||||||
| Combined Ratios: | |||||||||||||||||||||||||||||||||||
| Loss and loss expense ratio | 58.1 | % | 58.0 | 0.1 | pts | 59.7 | % | (1.7) | pts | ||||||||||||||||||||||||||
| Underwriting expense ratio | 34.6 | 34.7 | (0.1) | 34.2 | 0.5 | ||||||||||||||||||||||||||||||
| Dividends to policyholders ratio | 0.2 | 0.2 | — | 0.4 | (0.2) | ||||||||||||||||||||||||||||||
| Combined ratio | 92.9 | 92.9 | — | 94.3 | (1.4) | ||||||||||||||||||||||||||||||
| For the Year Ended December 31, | ||||||||||||||
| ($ in millions) | 2020 | 2019 | ||||||||||||
| Retention | 85 | % | 83 | |||||||||||
| Renewal pure price increases on NPW | 4.4 | 3.4 | ||||||||||||
| Direct new business | $ | 421.1 | 411.2 | |||||||||||
| ($ in millions) | Non-Catastrophe Property Losses | Catastrophe Losses | |||||||||||||||||||||||||||||||||
| For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Total Impact on Loss and Loss Expense Ratio |
(Favorable)/Unfavorable
Year-Over-Year Change |
|||||||||||||||||||||||||||||
| 2020 | $ | 296.2 | 13.8 | pts | $ | 117.8 | 5.5 | pts | 19.3 | 2.9 | |||||||||||||||||||||||||
| 2019 | 283.6 | 13.8 | 54.2 | 2.6 | 16.4 | (1.3) | |||||||||||||||||||||||||||||
| ($ in millions) | (Favorable) Prior Year Casualty Reserve Development | (Favorable) Year-Over-Year Change | |||||||||||||||||||||
| For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | |||||||||||||||||||||
| 2020 | $ | (85.0) | (4.0) | pts | (0.6) | ||||||||||||||||||
| 2019 | (69.0) | (3.4) | (0.4) | ||||||||||||||||||||
| General Liability | |||||||||||||||||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 |
2020
vs. 2019 |
2018 |
2019
vs. 2018 |
||||||||||||||||||||||||||||||
| NPW | $ | 716,119 | 699,262 | 2 | % | $ | 639,720 | 9 | % | ||||||||||||||||||||||||||
| Direct new business | 122,159 | 119,055 | 3 | 112,683 | 6 | ||||||||||||||||||||||||||||||
| Retention | 85 | % | 83 | 2 | pts | 83 | % | — | pts | ||||||||||||||||||||||||||
| Renewal pure price increases | 3.9 | 2.8 | 1.1 | 2.6 | 0.2 | ||||||||||||||||||||||||||||||
| NPE | $ | 694,019 | 669,895 | 4 | % | $ | 616,187 | 9 | % | ||||||||||||||||||||||||||
| Underwriting income | 103,262 | 69,932 | 48 | 70,268 | — | ||||||||||||||||||||||||||||||
| Combined ratio | 85.1 | 89.6 | (4.5) | 88.6 | 1.0 | ||||||||||||||||||||||||||||||
| % of total standard commercial NPW | 32 | 33 | 32 | ||||||||||||||||||||||||||||||||
| ($ in millions) | (Favorable) Prior Year Casualty Reserve Development |
(Favorable)/Unfavorable
Year-Over-Year Change |
|||||||||||||||||||||
| For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | |||||||||||||||||||||
| 2020 | $ | (35.0) | (5.0) | pts | (4.3) | ||||||||||||||||||
| 2019 | (5.0) | (0.7) | 0.8 | ||||||||||||||||||||
| Commercial Automobile | |||||||||||||||||||||||||||||||||||
|
2020
vs. 2019 |
2019
vs. 2018 |
||||||||||||||||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
| NPW | $ | 658,930 | 590,011 | 12 | % | $ | 518,942 | 14 | % | ||||||||||||||||||||||||||
| Direct new business | 112,893 | 102,956 | 10 | 94,442 | 9 | ||||||||||||||||||||||||||||||
| Retention | 86 | % | 83 | 3 | pts | 83 | % | — | pts | ||||||||||||||||||||||||||
| Renewal pure price increases | 8.1 | 7.5 | 0.6 | 7.3 | 0.2 | ||||||||||||||||||||||||||||||
| NPE | $ | 615,181 | 554,256 | 11 | % | $ | 493,093 | 12 | % | ||||||||||||||||||||||||||
| Underwriting loss | (3,126) | (43,797) | 93 | (77,403) | 43 | ||||||||||||||||||||||||||||||
| Combined ratio | 100.5 | 107.9 | (7.4) | 115.7 | (7.8) | ||||||||||||||||||||||||||||||
| % of total standard commercial NPW | 30 | 28 | 26 | ||||||||||||||||||||||||||||||||
| ($ in millions) | Non-Catastrophe Property Losses | Catastrophe Losses | |||||||||||||||||||||||||||||||||
| For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Total Impact on Loss and Loss Expense Ratio |
(Favorable)
Year-Over-Year Change |
|||||||||||||||||||||||||||||
| 2020 | $ | 92.2 | 15.0 | pts | $ | 3.4 | 0.6 | pts | 15.6 | (3.0) | |||||||||||||||||||||||||
| 2019 | 100.8 | 18.2 | 2.1 | 0.4 | 18.6 | (0.3) | |||||||||||||||||||||||||||||
| ($ in millions) | Unfavorable Prior Year Casualty Reserve Development |
(Favorable)/ Unfavorable
Year-Over-Year Change |
|||||||||||||||||||||
| For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | |||||||||||||||||||||
| 2020 | $ | 10.0 | 1.6 | pts | 0.9 | ||||||||||||||||||
| 2019 | 4.0 | 0.7 | (6.9) | ||||||||||||||||||||
| Workers Compensation | |||||||||||||||||||||||||||||||||||
|
2020
vs. 2019 |
2019
vs. 2018 |
||||||||||||||||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
| NPW | $ | 270,168 | 309,322 | (13) | % | $ | 316,647 | (2) | % | ||||||||||||||||||||||||||
| Direct new business | 51,078 | 60,139 | (15) | 60,089 | — | ||||||||||||||||||||||||||||||
| Retention | 84 | % | 84 | — | pts | 84 | % | — | pts | ||||||||||||||||||||||||||
| Renewal pure price decreases | (2.0) | (2.8) | 0.8 | (0.2) | (2.6) | ||||||||||||||||||||||||||||||
| NPE | $ | 278,062 | 311,370 | (11) | % | $ | 317,616 | (2) | % | ||||||||||||||||||||||||||
| Underwriting income | 70,897 | 80,630 | (12) | 94,395 | (15) | ||||||||||||||||||||||||||||||
| Combined ratio | 74.5 | 74.1 | 0.4 | 70.3 | 3.8 | ||||||||||||||||||||||||||||||
| % of total standard commercial NPW | 12 | 14 | 16 | ||||||||||||||||||||||||||||||||
| ($ in millions) | |||||||||||||||||||||||
| (Favorable) Prior Year Casualty Reserve Development |
Unfavorable/(Favorable)
Year-Over-Year Change |
||||||||||||||||||||||
| For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | |||||||||||||||||||||
| 2020 | $ | (60.0) | (21.6) | pts | 0.2 | ||||||||||||||||||
| 2019 | (68.0) | (21.8) | 4.3 | ||||||||||||||||||||
| Commercial Property | |||||||||||||||||||||||||||||||||||
|
2020
vs. 2019 |
2019
vs. 2018 |
||||||||||||||||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
| NPW | $ | 413,194 | 373,809 | 11 | % | $ | 342,027 | 9 | % | ||||||||||||||||||||||||||
| Direct new business | 94,697 | 88,527 | 7 | 76,391 | 16 | ||||||||||||||||||||||||||||||
| Retention | 84 | % | 82 | 2 | pts | 82 | % | — | pts | ||||||||||||||||||||||||||
| Renewal pure price increases | 4.6 | 3.3 | 1.3 | 3.1 | 0.2 | ||||||||||||||||||||||||||||||
| NPE | $ | 388,120 | 353,834 | 10 | % | $ | 329,660 | 7 | % | ||||||||||||||||||||||||||
| Underwriting income (loss) | (21,296) | 21,639 | (198) | (3,211) | 774 | ||||||||||||||||||||||||||||||
| Combined ratio | 105.5 | 93.9 | 11.6 | 101.0 | (7.1) | ||||||||||||||||||||||||||||||
| % of total standard commercial NPW | 19 | 17 | 17 | ||||||||||||||||||||||||||||||||
| ($ in millions) | Non-Catastrophe Property Losses | Catastrophe Losses | (Favorable)/Unfavorable Year-Over-Year Change | ||||||||||||||||||||||||||||||||
| For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Total Impact on Loss and Loss Expense Ratio | ||||||||||||||||||||||||||||||
| 2020 | $ | 168.6 | 43.4 | pts | $ | 90.2 | 23.3 | pts | 66.7 | 11.7 | |||||||||||||||||||||||||
| 2019 | 149.7 | 42.3 | 44.9 | 12.7 | 55.0 | (7.5) | |||||||||||||||||||||||||||||
|
2020
vs. 2019 |
2019
vs. 2018 |
||||||||||||||||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
| Insurance Segments Results: | |||||||||||||||||||||||||||||||||||
| NPW | $ | 295,166 | 304,592 | (3) | % | $ | 309,277 | (2) | % | ||||||||||||||||||||||||||
| NPE | 299,140 | 307,739 | (3) | 304,441 | 1 | ||||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||
| Loss and loss expense incurred | 233,260 | 211,300 | 10 | 206,752 | 2 | ||||||||||||||||||||||||||||||
| Net underwriting expenses incurred | 81,388 | 88,179 | (8) | 84,925 | 4 | ||||||||||||||||||||||||||||||
| Underwriting income | $ | (15,508) | 8,260 | (288) | % | $ | 12,764 | (35) | % | ||||||||||||||||||||||||||
| Combined Ratios: | |||||||||||||||||||||||||||||||||||
| Loss and loss expense ratio | 78.0 | % | 68.6 | 9.4 | pts | 67.9 | % | 0.7 | pts | ||||||||||||||||||||||||||
| Underwriting expense ratio | 27.2 | 28.7 | (1.5) | 27.9 | 0.8 | ||||||||||||||||||||||||||||||
| Combined ratio | 105.2 | 97.3 | 7.9 | 95.8 | 1.5 | ||||||||||||||||||||||||||||||
| ($ in millions) | 2020 | 2019 | ||||||||||||
| Retention | 83 | % | 83 | |||||||||||
| Renewal pure price increases on NPW | 2.5 | 5.0 | ||||||||||||
| Direct new business premiums | $ | 44.7 | 40.7 | |||||||||||
| ($ in millions) | Non-Catastrophe Property Losses | Catastrophe Losses | |||||||||||||||||||||||||||||||||
| For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Total Impact on Loss and Loss Expense Ratio | Unfavorable Year-Over-Year Change | |||||||||||||||||||||||||||||
| 2020 | $ | 86.0 | 28.7 | pts | $ | 77.5 | 25.9 | pts | 54.6 | 13.8 | |||||||||||||||||||||||||
| 2019 | 104.7 | 34.0 | 21.1 | 6.8 | 40.8 | 0.5 | |||||||||||||||||||||||||||||
| ($ in millions) | |||||||||||||||||||||||
| Unfavorable Prior Year Casualty Reserve Development |
Unfavorable/(Favorable)
Year-Over-Year Change |
||||||||||||||||||||||
| For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | |||||||||||||||||||||
| 2020 | $ | — | — | pts | (1.9) | ||||||||||||||||||
| 2019 | 6.0 | 1.9 | 0.4 | ||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 |
2020
vs. 2019 |
2018 |
2019
vs. 2018 |
||||||||||||||||||||||||||||||
| Insurance Segments Results: | |||||||||||||||||||||||||||||||||||
| NPW | $ | 247,290 | 237,761 | 4 | % | $ | 229,326 | 4 | % | ||||||||||||||||||||||||||
| NPE | 239,490 | 239,818 | — | 219,566 | 9 | ||||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||
| Loss and loss expense incurred | 156,936 | 152,335 | 3 | 150,344 | 1 | ||||||||||||||||||||||||||||||
| Net underwriting expenses incurred | 82,428 | 77,740 | 6 | 69,917 | 11 | ||||||||||||||||||||||||||||||
| Underwriting income (loss) | $ | 126 | 9,743 | (99) | % | $ | (695) | 1,502 | % | ||||||||||||||||||||||||||
| Combined Ratios: | |||||||||||||||||||||||||||||||||||
| Loss and loss expense ratio | 65.5 | % | 63.5 | 2.0 | pts | 68.5 | % | (5.0) | pts | ||||||||||||||||||||||||||
| Underwriting expense ratio | 34.4 | 32.4 | 2.0 | 31.8 | 0.6 | ||||||||||||||||||||||||||||||
| Combined ratio | 99.9 | 95.9 | 4.0 | 100.3 | (4.4) | ||||||||||||||||||||||||||||||
| ($ in millions) | 2020 | 2019 | ||||||||||||
| Overall renewal price increases | 6.2 | % | 6.0 | |||||||||||
| Direct new business premiums | $ | 113.9 | 96.8 | |||||||||||
| ($ in millions) | Non-Catastrophe Property Losses | Catastrophe Losses | |||||||||||||||||||||||||||||||||
| For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Total Impact on Loss and Loss Expense Ratio | (Favorable)/Unfavorable Year-Over-Year Change | |||||||||||||||||||||||||||||
| 2020 | $ | 27.9 | 11.6 | pts | $ | 20.0 | 8.4 | pts | 20.0 | 8.3 | |||||||||||||||||||||||||
| 2019 | 22.2 | 9.3 | 5.7 | 2.4 | 11.7 | (3.1) | |||||||||||||||||||||||||||||
| ($ in millions) | Unfavorable Prior Year Casualty Reserve Development |
(Favorable)/Unfavorable
Year-Over-Year Change |
|||||||||||||||||||||
| For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | |||||||||||||||||||||
| 2020 | $ | — | — | pts | (0.8) | ||||||||||||||||||
| 2019 | 2.0 | 0.8 | (4.7) | ||||||||||||||||||||
| Insurance Subsidiary | Pooling Percentage | |||||||
| Selective Insurance Company of America ("SICA") | 32.0% | |||||||
| Selective Way Insurance Company ("SWIC") | 21.0% | |||||||
| Selective Insurance Company of South Carolina ("SICSC") | 9.0% | |||||||
| Selective Insurance Company of the Southeast ("SICSE") | 7.0% | |||||||
| Selective Insurance Company of New York ("SICNY") | 7.0% | |||||||
| Selective Casualty Insurance Company ("SCIC") | 7.0% | |||||||
| Selective Auto Insurance Company of New Jersey ("SAICNJ") | 6.0% | |||||||
| Mesa Underwriters Specialty Insurance Company ("MUSIC") | 5.0% | |||||||
| Selective Insurance Company of New England ("SICNE") | 3.0% | |||||||
| Selective Fire and Casualty Insurance Company ("SFCIC") | 3.0% | |||||||
| ($ in millions) | Actual Gross Loss |
Net Loss
2
|
Accident
Year |
|||||||||||||||||
| Hurricane Name | ||||||||||||||||||||
| Superstorm Sandy | $125.5 | 45.6 | 2012 | |||||||||||||||||
| Hurricane Irene | 44.8 | 40.2 | 2011 | |||||||||||||||||
| Hurricane Hugo | 26.4 | 3.0 | 1989 | |||||||||||||||||
| Hurricane Isabel | 25.1 | 15.7 | 2003 | |||||||||||||||||
| Tropical Storm Isaias |
19.1
1
|
18.6 | 2020 | |||||||||||||||||
| Occurrence Exceedence Probability | Modeled Losses | ||||||||||||||||||||||
| ($ in thousands) |
Gross
Losses
1
|
Net
Losses
2
|
Net Losses
as a Percent of
GAAP Equity
3
|
||||||||||||||||||||
| 4.0% (1 in 25 year event) | $182,916 | 29,923 | 1 | % | |||||||||||||||||||
| 2.0% (1 in 50 year event) | 304,764 | 34,554 | 1 | ||||||||||||||||||||
| 1.0% (1 in 100 year event) | 489,387 | 39,206 | 1 | ||||||||||||||||||||
| 0.67% (1 in 150 year event) | 682,261 | 60,220 | 2 | ||||||||||||||||||||
| 0.5% (1 in 200 year event) | 778,401 | 62,062 | 2 | ||||||||||||||||||||
| 0.4% (1 in 250 year event) | 899,633 | 107,070 | 4 | ||||||||||||||||||||
| 0.2% (1 in 500 year event) | 1,290,100 | 414,519 | 15 | ||||||||||||||||||||
| PROPERTY REINSURANCE ON INSURANCE PRODUCTS | ||||||||||||||
| Treaty Name | Reinsurance Coverage | Terrorism Coverage | ||||||||||||
|
Property Catastrophe Excess of Loss
(covers all insurance operations) |
$785 million above $40 million retention treaty that responds on per occurrence basis in four layers: | All nuclear, biological, chemical, and radioactive ("NBCR") losses are excluded regardless of whether or not they are certified under TRIPRA. Non-NBCR losses are covered to the same extent as non-terrorism losses. Please see Item 1A. “Risk Factors.” of this Form 10-K for discussion regarding TRIPRA. | ||||||||||||
|
- 82% of losses in excess of $40 million up to
$100 million; |
||||||||||||||
|
- 97% of losses in excess of $100 million up to
$225 million; |
||||||||||||||
|
- 97% of losses in excess of $225 million up to
$475 million; and |
||||||||||||||
|
- 90% of losses in excess of $475 million up
to $825 million. |
||||||||||||||
| - The treaty provides one reinstatement in each of the first three layers and no reinstatement in the fourth layer. The annual aggregate limit is $1.1 billion, net of the Insurance Subsidiaries' co-participation. | ||||||||||||||
| In addition, our $35 million above $5 million retention treaty that responds on per occurrence basis covers 85% of losses outside of our standard lines original 22-state footprint and has an annual aggregate limit of $30 million, net of the Insurance Subsidiaries' co-participation. This layer was purchased primarily to protect the growth of our E&S property book but also provides coverage for our Standard Lines expansion states. | ||||||||||||||
|
Property Excess of Loss
(covers all insurance operations) |
$58 million above $2 million retention covering 100% in three layers. Losses other than TRIPRA certified losses are subject to the following reinstatements and annual aggregate limits: | All NBCR losses are excluded regardless of whether or not they are certified under TRIPRA. For non-NBCR losses, the treaty distinguishes between acts committed on behalf of foreign persons or foreign interests ("Foreign Terrorism") and those that are not. The treaty provides annual aggregate limits for Foreign Terrorism (other than NBCR) acts of $24 million for the first layer and $60 million for the second layer and for the third layer $40 million. Non-foreign terrorism losses (other than NBCR) are covered to the same extent as non-terrorism losses. | ||||||||||||
|
- $8 million in excess of $2 million layer
provides unlimited reinstatements; |
||||||||||||||
|
- $30 million in excess of $10 million layer
provides three reinstatements, $120 million in aggregate limits; and |
||||||||||||||
|
- $20 million in excess of $40 million layer
provides three reinstatements, $80 million in aggregate limits. |
||||||||||||||
| Flood | 100% reinsurance by the federal government’s WYO. | None | ||||||||||||
| CASUALTY REINSURANCE ON INSURANCE PRODUCTS | ||||||||||||||
| Treaty Name | Reinsurance Coverage | Terrorism Coverage | ||||||||||||
|
Casualty Excess of Loss
(covers all insurance operations) |
There are six layers covering 100% of $88 million in excess of $2 million. Losses other than terrorism losses are subject to the following: | All NBCR losses are excluded. All other losses stemming from the acts of terrorism are subject to the following: | ||||||||||||
|
- $3 million in excess of $2 million layer
provides 28 reinstatements, $87 million annual aggregate limit; |
- $3 million in excess of $2 million layer with
$15 million net annual terrorism aggregate limit; |
|||||||||||||
|
- $7 million in excess of $5 million layer
provides six reinstatements, $49 million annual aggregate limit; |
- $7 million in excess of $5 million layer with
$28 million net annual terrorism aggregate limit; |
|||||||||||||
|
- $9 million in excess of $12 million layer
provides three reinstatements; $36 million annual aggregate limit; |
- $9 million in excess of $12 million layer with
$27 million net annual terrorism aggregate limit; |
|||||||||||||
|
- $9 million in excess of $21 million layer
provides one reinstatement, $18 million annual aggregate limit; |
- $9 million in excess of $21 million layer with
$18 million net annual terrorism aggregate limit; |
|||||||||||||
|
- $20 million in excess of $30 million layer
provides one reinstatement, $40 million annual aggregate limit; and |
- $20 million in excess of $30 million layer with
$40 million net annual terrorism aggregate limit; and |
|||||||||||||
|
- $40 million in excess of $50 million layer
provides one reinstatement, $80 million annual aggregate limit. |
- $40 million in excess of $50 million layer with
$80 million net annual terrorism aggregate limit. |
|||||||||||||
| ($ in thousands) | 2020 | 2019 | Change | |||||||||||||||||
| Total invested assets | $ | 7,505,599 | 6,688,654 | 12 | % | |||||||||||||||
| Invested assets per dollar of common stockholders' equity | 2.96 | 3.05 | (3) | |||||||||||||||||
|
Unrealized gain – before tax
1
|
395,207 | 216,564 | 82 | |||||||||||||||||
|
Unrealized gain – after tax
1
|
312,214 | 171,085 | 82 | |||||||||||||||||
| ($ in thousands) | 2020 | 2019 |
2020
vs. 2019 |
2018 |
2019
vs. 2018 |
||||||||||||||||||||||||||||||
| Fixed income securities | $ | 203,926 | 203,255 | — | % | 178,104 | 14 | % | |||||||||||||||||||||||||||
| Equity securities | 9,286 | 6,996 | 33 | 7,764 | (10) | ||||||||||||||||||||||||||||||
| CMLs | 844 | — | n/m | — | n/m | ||||||||||||||||||||||||||||||
| Short-term investments | 1,821 | 6,653 | (73) | 3,472 | 92 | ||||||||||||||||||||||||||||||
| Other investments | 26,922 | 18,778 | 43 | 17,799 | 6 | ||||||||||||||||||||||||||||||
| Investment expenses | (15,692) | (13,139) | (19) | (11,803) | (11) | ||||||||||||||||||||||||||||||
| Net investment income earned – before tax | 227,107 | 222,543 | 2 | 195,336 | 14 | ||||||||||||||||||||||||||||||
| Net investment income tax expense | 42,495 | 41,382 | 3 | 34,855 | 19 | ||||||||||||||||||||||||||||||
| Net investment income earned – after tax | $ | 184,612 | 181,161 | 2 | 160,481 | 13 | |||||||||||||||||||||||||||||
| Effective tax rate | 18.7 | % | 18.6 | 0.1 | pts | 17.8 | 0.8 | pts | |||||||||||||||||||||||||||
| Annual after-tax yield on fixed income securities | 2.6 | 2.9 | (0.3) | 2.8 | 0.1 | ||||||||||||||||||||||||||||||
| Annual after-tax yield on investment portfolio | 2.6 | 2.9 | (0.3) | 2.8 | 0.1 | ||||||||||||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
| Net realized gains (losses) on disposals | $ | 9,148 | 26,715 | (18,975) | ||||||||||||||||
| Net unrealized gains (losses) on equity securities | 7,939 | (8,649) | (29,369) | |||||||||||||||||
| Net credit loss on fixed maturities, AFS | (5,042) | |||||||||||||||||||
| Net credit benefit on fixed maturities, HTM | 4 | |||||||||||||||||||
| Losses on securities for which we have the intent to sell | (16,266) | |||||||||||||||||||
| Net OTTI losses recognized earnings | (3,644) | (6,579) | ||||||||||||||||||
| Total net realized and unrealized investment (losses) gains | $ | (4,217) | 14,422 | (54,923) | ||||||||||||||||
| ($ in millions) | 2020 | 2019 | 2018 | |||||||||||||||||
| Federal income tax expense | $ | 56.6 | 64.8 | 32.8 | ||||||||||||||||
| Effective tax rate | 18.7 | % | 19.3 | 15.5 | ||||||||||||||||
| Branch | Insurance Subsidiary Member | ||||||||||||||||||||||||||||
| Federal Home Loan Bank of Indianapolis ("FHLBI") |
SICSC
1
|
||||||||||||||||||||||||||||
|
SICSE
1
|
|||||||||||||||||||||||||||||
| Federal Home Loan Bank of New York ("FHLBNY") | SICA | ||||||||||||||||||||||||||||
| SICNY | |||||||||||||||||||||||||||||
| ($ in millions) | Admitted Assets | Borrowing Limitation | Amount Borrowed | Remaining Capacity | Additional FHLB Stock Requirements | ||||||||||||||||||||||||
| As of December 31, 2020 | |||||||||||||||||||||||||||||
| SICSC | $ | 763.2 | $ | 76.3 | 32.0 | 44.3 | 0.3 | ||||||||||||||||||||||
| SICSE | 608.0 | 60.8 | 28.0 | 32.8 | 0.2 | ||||||||||||||||||||||||
| SICA | 2,840.3 | 284.0 | 50.0 | 234.0 | 10.5 | ||||||||||||||||||||||||
| SICNY | 527.8 | 26.4 | — | 26.4 | 1.2 | ||||||||||||||||||||||||
| Total | $ | 447.5 | 110.0 | 337.5 | 12.2 | ||||||||||||||||||||||||
| ($ in millions) |
Admitted Assets
as of December 31, 2020 |
Borrowing Limitation | Amount Borrowed | Remaining Capacity | |||||||||||||||||||
| As of December 31, 2020 | |||||||||||||||||||||||
| SICSC | $ | 763.2 | $ | 76.3 | 24.0 | 52.3 | |||||||||||||||||
| SICSE | 608.0 | 60.8 | 16.0 | 44.8 | |||||||||||||||||||
| Total | $ | 137.1 | 40.0 | 97.1 | |||||||||||||||||||
| Contractual Obligations | Payment Due by Period | |||||||||||||||||||||||||||||||
|
Less than
1 year |
1-3
years |
3-5
years |
More than
5 years |
|||||||||||||||||||||||||||||
| ($ in millions) | Total | |||||||||||||||||||||||||||||||
| Operating leases | $ | 45.1 | 8.4 | 12.2 | 8.3 | 16.2 | ||||||||||||||||||||||||||
| Finance leases | 0.5 | 0.3 | 0.2 | — | — | |||||||||||||||||||||||||||
| Notes payable | 560.0 | 50.0 | — | — | 510.0 | |||||||||||||||||||||||||||
| Interest on debt obligations | 622.4 | 28.8 | 56.6 | 56.6 | 480.4 | |||||||||||||||||||||||||||
| Subtotal | 1,228.0 | 87.5 | 69.0 | 64.9 | 1,006.6 | |||||||||||||||||||||||||||
| Gross loss and loss expense payments | 4,260.4 | 1,171.2 | 1,357.3 | 644.7 | 1,087.2 | |||||||||||||||||||||||||||
| Ceded loss and loss expense payments | 554.2 | 141.2 | 134.4 | 72.4 | 206.2 | |||||||||||||||||||||||||||
| Net loss and loss expense payments | 3,706.2 | 1,030.0 | 1,222.9 | 572.3 | 881.0 | |||||||||||||||||||||||||||
| Total | $ | 4,934.2 | 1,117.5 | 1,291.9 | 637.2 | 1,887.6 | ||||||||||||||||||||||||||
| ($ in millions) | Amount of Obligation | Year of Expiration of Obligation | ||||||||||||
| Alternative and other investments | $ |
|
2036 | |||||||||||
| Non-publicly traded collateralized loan obligations in our fixed income securities portfolio |
|
2030 | ||||||||||||
| Non-publicly traded common stock within our equity portfolio |
|
2021 | ||||||||||||
| Commercial mortgage loans |
|
Less than 1 year | ||||||||||||
| Total | $ | 259.8 | ||||||||||||
| 2020 Interest Rate Shift in Basis Points | |||||||||||||||||||||||||||||||||||
| ($ in thousands) | -200 | -100 | — | 100 | 200 | ||||||||||||||||||||||||||||||
| Fixed income securities | |||||||||||||||||||||||||||||||||||
| Fair value of fixed income securities portfolio | $ | 6,832,056 | 6,695,209 | 6,473,929 | 6,227,449 | 5,980,988 | |||||||||||||||||||||||||||||
| Fair value change | 358,127 | 221,279 | (246,480) | (492,941) | |||||||||||||||||||||||||||||||
| Fair value change from base (%) | 5.5 | % | 3.4 | % | (3.8) | % | (7.6) | % | |||||||||||||||||||||||||||
| December 31, 2020 | Credit Rating | ||||||||||||||||||||||||||||||||||||||||||||||
| ($ in millions) | Amortized Cost | Fair Value | % of Invested Assets | Yield to Worst | Effective Duration in Years | Average Life in Years | AAA | AA | A | BBB | Non-Investment Grade | Not Rated | |||||||||||||||||||||||||||||||||||
| Short-term investments | $ | 410 | $ | 410 | 5.5 | % | 0.1 | % | 0.00 | 0.00 | $ | 382 | $ | 27 | $ | — | $ | 1 | $ | 1 | $ | — | |||||||||||||||||||||||||
| Fixed income securities: | |||||||||||||||||||||||||||||||||||||||||||||||
| U.S. government obligations | 110 | 116 | 1.5 | 0.7 | 4.5 | 6.3 | 113 | 3 | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Foreign government obligations | 17 | 18 | 0.2 | 1.3 | 5.0 | 5.8 | — | 2 | 9 | 7 | — | — | |||||||||||||||||||||||||||||||||||
| State and municipal obligations | 1,164 | 1,252 | 16.7 | 1.0 | 5.4 | 5.0 | 225 | 613 | 354 | 60 | — | — | |||||||||||||||||||||||||||||||||||
| Corporate securities | 2,165 | 2,341 | 31.2 | 1.7 | 4.7 | 6.2 | 14 | 123 | 881 | 1,092 | 232 | — | |||||||||||||||||||||||||||||||||||
| MBS: | |||||||||||||||||||||||||||||||||||||||||||||||
| RMBS: | |||||||||||||||||||||||||||||||||||||||||||||||
| Agency RMBS | 904 | 954 | 12.7 | 1.0 | 2.5 | 3.2 | 954 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Non-agency RMBS | 95 | 98 | 1.3 | 1.7 | 1.0 | 2.7 | 44 | 5 | 47 | 1 | — | — | |||||||||||||||||||||||||||||||||||
| Total RMBS | 999 | 1,052 | 14.0 | 1.0 | 2.3 | 3.2 | 998 | 5 | 47 | 1 | — | — | |||||||||||||||||||||||||||||||||||
| Commercial mortgage-backed securities ("CMBS") | 621 | 668 | 8.9 | 1.6 | 4.6 | 5.9 | 586 | 40 | 31 | 11 | — | — | |||||||||||||||||||||||||||||||||||
| Total mortgage-backed securities | 1,620 | 1,720 | 22.9 | 1.3 | 3.2 | 4.2 | 1,584 | 45 | 78 | 12 | — | — | |||||||||||||||||||||||||||||||||||
| CLO and other ABS: | |||||||||||||||||||||||||||||||||||||||||||||||
| Auto | 43 | 45 | 0.6 | 0.5 | 2.4 | 2.3 | 35 | 6 | 3 | — | 1 | — | |||||||||||||||||||||||||||||||||||
| Aircraft | 53 | 51 | 0.7 | 6.0 | 3.2 | 3.6 | — | 1 | 16 | 31 | 3 | — | |||||||||||||||||||||||||||||||||||
| CLOs | 659 | 661 | 8.8 | 3.0 | 1.1 | 4.5 | 357 | 206 | 32 | 16 | 48 | 1 | |||||||||||||||||||||||||||||||||||
| Credit cards | 17 | 17 | 0.2 | 0.3 | 1.4 | 1.4 | 17 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Other ABS | 243 | 253 | 3.4 | 2.4 | 3.4 | 5.3 | 68 | 9 | 139 | 28 | 9 | 1 | |||||||||||||||||||||||||||||||||||
| Total CLOs and Other ABS | 1,015 | 1,027 | 13.7 | 2.8 | 1.8 | 4.5 | 477 | 222 | 190 | 75 | 62 | 2 | |||||||||||||||||||||||||||||||||||
| Total securitized assets | 2,635 | 2,746 | 36.6 | 1.8 | 2.7 | 4.3 | 2,062 | 267 | 268 | 87 | 62 | 2 | |||||||||||||||||||||||||||||||||||
| Total fixed income securities and short-term investments | 6,500 | 6,884 | 91.7 | 1.5 | 3.8 | 4.9 | 2,795 | 1,034 | 1,512 | 1,247 | 295 | 2 | |||||||||||||||||||||||||||||||||||
| Total fixed income securities and short-term investments by credit rating percentage | 40.6 | % | 15.0 | % | 22.0 | % | 18.1 | % | 4.3 | % | — | % | |||||||||||||||||||||||||||||||||||
| Commercial mortgage loans | 46 | 47 | 0.6 | 3.8 | 2.8 | 7.0 | — | — | 27 | 20 | — | — | |||||||||||||||||||||||||||||||||||
| Equity securities: | |||||||||||||||||||||||||||||||||||||||||||||||
|
Common stock
1
|
300 | 309 | 4.1 | — | — | — | — | — | — | — | — | 309 | |||||||||||||||||||||||||||||||||||
| Preferred stock | 2 | 2 | — | — | — | — | — | — | — | 1 | 1 | — | |||||||||||||||||||||||||||||||||||
| Total equity securities | 302 | 310 | 4.1 | — | — | — | — | — | — | 1 | 1 | 309 | |||||||||||||||||||||||||||||||||||
| Other investments: | |||||||||||||||||||||||||||||||||||||||||||||||
| Alternative investments: | |||||||||||||||||||||||||||||||||||||||||||||||
| Private equity | 157 | 157 | 2.1 | — | — | — | — | — | — | — | — | 157 | |||||||||||||||||||||||||||||||||||
| Private credit | 54 | 54 | 0.7 | — | — | — | — | — | — | — | — | 54 | |||||||||||||||||||||||||||||||||||
| Real assets | 20 | 20 | 0.3 | — | — | — | — | — | — | — | — | 20 | |||||||||||||||||||||||||||||||||||
| Total alternative investments | 231 | 231 | 3.1 | — | — | — | — | — | — | — | — | 231 | |||||||||||||||||||||||||||||||||||
| Other investments | 35 | 35 | 0.5 | — | — | — | — | — | — | — | — | 35 | |||||||||||||||||||||||||||||||||||
| Total other investments | 266 | 266 | 3.5 | — | — | — | — | — | — | — | — | 266 | |||||||||||||||||||||||||||||||||||
| Total invested assets | $ | 7,114 | $ | 7,508 | 100 | — | — | — | $ | 2,795 | $ | 1,034 | $ | 1,539 | $ | 1,268 | $ | 295 | $ | 576 | |||||||||||||||||||||||||||
| State Exposures of Municipal Bonds | General Obligation |
Special
Revenue |
Fair
Value |
Weighted Average
Credit Quality |
||||||||||||||||||||||||||||
| ($ in thousands) | State & Local | % of Total | ||||||||||||||||||||||||||||||
| New York | $ | 9,605 | 141,563 | 151,168 | 12% | AA- | ||||||||||||||||||||||||||
| California | 49,197 | 83,733 | 132,930 | 11% | AA- | |||||||||||||||||||||||||||
|
Texas
1
|
39,450 | 50,090 | 89,540 | 7% | AA | |||||||||||||||||||||||||||
| New Jersey | — | 68,201 | 68,201 | 5% | A | |||||||||||||||||||||||||||
| Florida | 3,071 | 49,902 | 52,973 | 4% | AA- | |||||||||||||||||||||||||||
| Pennsylvania | — | 52,953 | 52,953 | 4% | AA- | |||||||||||||||||||||||||||
| Washington | 20,533 | 30,704 | 51,237 | 4% | AA | |||||||||||||||||||||||||||
| Massachusetts | 902 | 41,802 | 42,704 | 3% | AA | |||||||||||||||||||||||||||
| Colorado | 4,680 | 36,102 | 40,782 | 3% | A+ | |||||||||||||||||||||||||||
| Ohio | 2,321 | 33,154 | 35,475 | 3% | A+ | |||||||||||||||||||||||||||
| Other | 100,569 | 322,253 | 422,822 | 34% | AA- | |||||||||||||||||||||||||||
| 230,328 | 910,457 | 1,140,785 | 91% | AA- | ||||||||||||||||||||||||||||
| Pre-refunded/escrowed to maturity bonds | 41,044 | 70,104 | 111,148 | 9% | AAA | |||||||||||||||||||||||||||
| Total | $ | 271,372 | 980,561 | 1,251,933 | 100% | AA- | ||||||||||||||||||||||||||
| % of Total Municipal Portfolio | 22 | % | 78 | % | 100 | % | ||||||||||||||||||||||||||
| % of Total Investment Portfolio | 4 | % | 13 | % | 17 | % | ||||||||||||||||||||||||||
| December 31, 2020 |
Fair
Value |
Carry
Value |
Unrealized/ Unrecognized Gain (Loss) |
Weighted Average
Credit Quality |
||||||||||||||||||||||
| ($ in millions) | ||||||||||||||||||||||||||
| Investment grade | $ | 2,109.2 | 2,108.3 | 173.8 | A- | |||||||||||||||||||||
| Non-investment grade | 232.1 | 232.1 | 5.7 | B+ | ||||||||||||||||||||||
| Total corporate securities | $ | 2,341.3 | 2,340.4 | 179.5 | BBB+ | |||||||||||||||||||||
| December 31, 2019 |
Fair
Value |
Carry
Value |
Unrealized/ Unrecognized Gain (Loss) |
Weighted Average
Credit Quality |
||||||||||||||||||||||
| ($ in millions) | ||||||||||||||||||||||||||
| Investment grade | $ | 1,775.9 | 1,775.0 | 79.8 | A- | |||||||||||||||||||||
| Non-investment grade | 188.7 | 188.7 | 1.7 | B+ | ||||||||||||||||||||||
| Total corporate securities | $ | 1,964.6 | 1,963.7 | 81.5 | BBB+ | |||||||||||||||||||||
| December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
| ($ in millions) | Fair Value | Weighted Average Credit Rating | % of Fixed Income Portfolio | Fair Value | Weighted Average Credit Rating | % of Fixed Income Portfolio | ||||||||||||||||||||||||||||||||
| Financials | 1,048.5 | A- | 16 | % | $ | 925.2 | A- | 15 | % | |||||||||||||||||||||||||||||
| Consumer non-cyclicals | 281.3 | BBB+ | 4 | 259.7 | BBB+ | 4 | ||||||||||||||||||||||||||||||||
| Communications | 150.2 | BBB+ | 2 | 129.8 | BBB+ | 2 | ||||||||||||||||||||||||||||||||
|
Consumer cyclicals
1
|
144.5 | BBB- | 2 | 136.0 | BBB | 2 | ||||||||||||||||||||||||||||||||
| Technology | 109.0 | BBB+ | 2 | 81.6 | BBB+ | 1 | ||||||||||||||||||||||||||||||||
| Energy | 100.5 | BBB | 2 | 104.7 | BBB | 2 | ||||||||||||||||||||||||||||||||
| Utilities | 76.4 | BBB+ | 1 | 37.6 | BBB+ | 1 | ||||||||||||||||||||||||||||||||
| Bank loans | 71.4 | B | 1 | 65.6 | B | 1 | ||||||||||||||||||||||||||||||||
| Basic materials | 40.0 | BBB- | 1 | 26.7 | BBB- | — | ||||||||||||||||||||||||||||||||
| Other industrials | 204.9 | BBB | 3 | 158.5 | BBB | 3 | ||||||||||||||||||||||||||||||||
| Other | 114.6 | BBB+ | 2 | 39.2 | BBB+ | 1 | ||||||||||||||||||||||||||||||||
| Total corporate securities | 2,341.3 | BBB+ | 36 | 1,964.6 | BBB+ | 32 | ||||||||||||||||||||||||||||||||
| ($ in millions) | December 31, 2020 | December 31, 2019 | ||||||||||||
| Consumer cyclicals | $ | 7.5 | 4.7 | |||||||||||
| Energy | $ | 7.6 | 3.8 | |||||||||||
| December 31, 2020 |
Fair
Value |
Carry
Value |
Unrealized/ Unrecognized Gain (Loss) |
Weighted Average
Credit Quality |
||||||||||||||||||||||
| ($ in millions) | ||||||||||||||||||||||||||
| Investment grade: | ||||||||||||||||||||||||||
| CLO | $ | 611.6 | 611.6 | 4.1 | AA+ | |||||||||||||||||||||
| Other ABS | 351.9 | 351.9 | 10.4 | A+ | ||||||||||||||||||||||
| Total investment grade | 963.5 | 963.5 | 14.5 | AA | ||||||||||||||||||||||
| Non-investment grade: | ||||||||||||||||||||||||||
| CLO | 49.2 | 49.2 | (2.3) | BB- | ||||||||||||||||||||||
| Other ABS | 13.9 | 13.9 | 0.1 | B | ||||||||||||||||||||||
| Total non-investment grade | 63.1 | 63.1 | (2.2) | BB- | ||||||||||||||||||||||
| Total CLO and other ABS | $ | 1,026.6 | 1,026.6 | 12.3 | AA- | |||||||||||||||||||||
| December 31, 2019 |
Fair
Value |
Carry
Value |
Unrealized/ Unrecognized Gain (Loss) |
Weighted Average
Credit Quality |
||||||||||||||||||||||
| ($ in millions) | ||||||||||||||||||||||||||
| Investment grade: | ||||||||||||||||||||||||||
| CLO | $ | 496.7 | 496.7 | (2.4) | AA | |||||||||||||||||||||
| Other ABS | 274.1 | 274.1 | 5.8 | A+ | ||||||||||||||||||||||
| Total investment grade | 770.8 | 770.8 | 3.4 | AA | ||||||||||||||||||||||
| Non-investment grade: | ||||||||||||||||||||||||||
| CLO | 14.7 | 14.7 | (0.8) | B+ | ||||||||||||||||||||||
| Other ABS | 7.5 | 7.5 | (0.1) | B+ | ||||||||||||||||||||||
| Total non-investment grade | 22.2 | 22.2 | (0.9) | B+ | ||||||||||||||||||||||
| Total CLO and other ABS | $ | 793.0 | 793.0 | 2.5 | AA- | |||||||||||||||||||||
| Change in Equity Values in Percent | ||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | (30)% | (20)% | (10)% | 0% | 10% | 20% | 30% | |||||||||||||||||||||||||||||||||||||
| Fair value of AFS equity portfolio | $ | 217,257 | 248,294 | 279,330 | 310,367 | 341,404 | 372,440 | 403,477 | ||||||||||||||||||||||||||||||||||||
| Fair value change | (93,110) | (62,073) | (31,037) | 31,037 | 62,073 | 93,110 | ||||||||||||||||||||||||||||||||||||||
| Asset Category | Percentage of Invested Assets | ||||||||||
| Highly-liquid assets | 68 | % | |||||||||
|
Generally liquid assets, may become less liquid with market stress
1
|
27 | ||||||||||
|
Generally illiquid assets
2
|
5 | ||||||||||
| Total | 100 | % | |||||||||
| 2020 | ||||||||||||||||||||
| ($ in thousands) |
Year of
Maturity |
Carrying
Amount |
Fair
Value |
|||||||||||||||||
| Financial liabilities | ||||||||||||||||||||
| Long-term debt | ||||||||||||||||||||
|
1.61% Borrowings from FHLBNY
|
2021 | $ | 25,000 | 25,182 | ||||||||||||||||
|
1.56% Borrowings from FHLBNY
|
2021 | 25,000 | 25,198 | |||||||||||||||||
|
3.03% Borrowings from FHLBI
|
2026 | 60,000 | 67,513 | |||||||||||||||||
|
7.25% Senior Notes
|
2034 | 49,914 | 66,148 | |||||||||||||||||
|
6.70% Senior Notes
|
2035 | 99,499 | 127,886 | |||||||||||||||||
|
5.375% Senior Notes
|
2049 | 294,241 | 383,669 | |||||||||||||||||
|
Subtotal
|
553,654 | 695,596 | ||||||||||||||||||
|
Unamortized debt issuance costs
|
(3,419) | |||||||||||||||||||
| Finance lease obligations | 508 | |||||||||||||||||||
|
Total notes payable
|
$ | 550,743 | ||||||||||||||||||
| Consolidated Balance Sheets | ||||||||||||||
| December 31, | ||||||||||||||
| ($ in thousands, except share amounts) | 2020 | 2019 | ||||||||||||
| ASSETS | ||||||||||||||
| Investments: | ||||||||||||||
|
Fixed income securities, held-to-maturity – at carrying value (fair value: $
|
$ |
|
|
|||||||||||
| Less allowance for credit losses |
(
|
|
||||||||||||
| Fixed income securities, held-to-maturity, net of allowance for credit losses |
|
|
||||||||||||
|
Fixed income securities, available-for-sale – at fair value
(allowance for credit losses: $
|
|
|
||||||||||||
|
Commercial mortgage loans – at carrying value (fair value: $
|
|
|
||||||||||||
| Less: allowance for credit losses |
|
|
||||||||||||
| Commercial mortgage loans, net of allowance for credit losses |
|
|
||||||||||||
|
Equity securities – at fair value (cost: $
|
|
|
||||||||||||
| Short-term investments |
|
|
||||||||||||
| Other investments |
|
|
||||||||||||
| Total investments (Notes 5 and 7) |
|
|
||||||||||||
| Cash |
|
|
||||||||||||
| Restricted cash |
|
|
||||||||||||
| Interest and dividends due or accrued |
|
|
||||||||||||
| Premiums receivable |
|
|
||||||||||||
| Less: allowance for credit losses (Note 8) |
(
|
(
|
||||||||||||
| Premiums receivable, net of allowance for credit losses |
|
|
||||||||||||
| Reinsurance recoverable |
|
|
||||||||||||
| Less: allowance for credit losses (Note 9) |
(
|
(
|
||||||||||||
| Reinsurance recoverable, net of allowance for credit losses |
|
|
||||||||||||
| Prepaid reinsurance premiums (Note 9) |
|
|
||||||||||||
| Deferred federal income tax (Note 14) |
|
|
||||||||||||
|
Property and equipment – at cost, net of accumulated
depreciation and amortization of: $
|
|
|
||||||||||||
| Deferred policy acquisition costs (Note 2) |
|
|
||||||||||||
| Goodwill (Note 12) |
|
|
||||||||||||
| Other assets |
|
|
||||||||||||
| Total assets | $ |
|
|
|||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
| Liabilities: | ||||||||||||||
| Reserve for loss and loss expense (Note 10) | $ |
|
|
|||||||||||
| Unearned premiums |
|
|
||||||||||||
| Long-term debt (Note 11) |
|
|
||||||||||||
| Current federal income tax |
|
|
||||||||||||
| Deferred federal income tax (Note 14) |
|
|
||||||||||||
| Accrued salaries and benefits |
|
|
||||||||||||
| Other liabilities |
|
|
||||||||||||
| Total liabilities | $ |
|
|
|||||||||||
| Stockholders’ Equity: | ||||||||||||||
|
Preferred stock of $
|
||||||||||||||
|
Authorized shares:
|
$ |
|
|
|||||||||||
|
Common stock of $
|
||||||||||||||
|
Authorized shares
|
||||||||||||||
|
Issued:
|
|
|
||||||||||||
| Additional paid-in capital |
|
|
||||||||||||
| Retained earnings |
|
|
||||||||||||
| Accumulated other comprehensive income (Note 6) |
|
|
||||||||||||
|
Treasury stock – at cost (shares:
|
(
|
(
|
||||||||||||
| Total stockholders’ equity |
|
|
||||||||||||
| Commitments and contingencies (Notes 19 and 20) |
|
|
||||||||||||
| Total liabilities and stockholders’ equity | $ |
|
|
|||||||||||
| Consolidated Statements of Income | ||||||||||||||||||||
| December 31, | ||||||||||||||||||||
| ($ in thousands, except per share amounts) | 2020 | 2019 | 2018 | |||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Net premiums earned | $ |
|
|
|
||||||||||||||||
| Net investment income earned |
|
|
|
|||||||||||||||||
| Net realized and unrealized investment (losses) gains |
(
|
|
(
|
|||||||||||||||||
| Other income |
|
|
|
|||||||||||||||||
| Total revenues |
|
|
|
|||||||||||||||||
| Expenses: | ||||||||||||||||||||
| Loss and loss expense incurred |
|
|
|
|||||||||||||||||
| Amortization of deferred policy acquisition costs |
|
|
|
|||||||||||||||||
| Other insurance expenses |
|
|
|
|||||||||||||||||
| Interest expense |
|
|
|
|||||||||||||||||
| Corporate expenses |
|
|
|
|||||||||||||||||
| Total expenses |
|
|
|
|||||||||||||||||
| Income before federal income tax |
|
|
|
|||||||||||||||||
| Federal income tax expense: | ||||||||||||||||||||
| Current |
|
|
|
|||||||||||||||||
| Deferred |
(
|
|
(
|
|||||||||||||||||
| Total federal income tax expense |
|
|
|
|||||||||||||||||
| Net income | $ |
|
|
|
||||||||||||||||
| Preferred stock dividends |
|
|
|
|||||||||||||||||
| Net income available to common stockholders | $ |
|
|
|
||||||||||||||||
| Earnings per common share: | ||||||||||||||||||||
| Net income available to common stockholders - Basic | $ |
|
|
|
||||||||||||||||
| Net income available to common stockholders - Diluted | $ |
|
|
|
||||||||||||||||
| Consolidated Statements of Comprehensive Income | ||||||||||||||||||||
| December 31, | ||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
| Net income | $ |
|
|
|
||||||||||||||||
| Other comprehensive income (loss) ("OCI"), net of tax: | ||||||||||||||||||||
| Unrealized gains (losses) on investment securities: | ||||||||||||||||||||
| Unrealized holding gains (losses) arising during year |
|
|
(
|
|||||||||||||||||
| Unrealized losses on securities with credit loss recognized in earnings |
(
|
|
|
|||||||||||||||||
|
Amounts reclassified into net income:
|
||||||||||||||||||||
|
Held-to-maturity securities
|
(
|
(
|
|
|||||||||||||||||
| Net realized losses on disposals and losses on intent-to-sell available-for-sale ("AFS") securities |
|
|
|
|||||||||||||||||
| Credit loss expense |
|
|
|
|||||||||||||||||
| Total unrealized gains (losses) on investment securities |
|
|
(
|
|||||||||||||||||
| Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
| Net actuarial gain (loss) |
|
(
|
(
|
|||||||||||||||||
|
Amounts reclassified into net income:
|
||||||||||||||||||||
| Net actuarial loss |
|
|
|
|||||||||||||||||
|
Total defined benefit pension and post-retirement plans
|
|
(
|
(
|
|||||||||||||||||
| Other comprehensive income (loss) |
|
|
(
|
|||||||||||||||||
| Comprehensive income | $ |
|
|
|
||||||||||||||||
| Consolidated Statements of Stockholders’ Equity | ||||||||||||||||||||
| December 31, | ||||||||||||||||||||
| ($ in thousands, except share and per share amounts) | 2020 | 2019 | 2018 | |||||||||||||||||
| Preferred stock: | ||||||||||||||||||||
| Beginning of year | $ |
|
|
|
||||||||||||||||
| Issuance of preferred stock |
|
|
|
|||||||||||||||||
| End of year |
|
|
|
|||||||||||||||||
| Common stock: | ||||||||||||||||||||
| Beginning of year |
|
|
|
|||||||||||||||||
| Dividend reinvestment plan |
|
|
|
|||||||||||||||||
| Stock purchase and compensation plans |
|
|
|
|||||||||||||||||
| End of year |
|
|
|
|||||||||||||||||
| Additional paid-in capital: | ||||||||||||||||||||
| Beginning of year |
|
|
|
|||||||||||||||||
| Dividend reinvestment plan |
|
|
|
|||||||||||||||||
| Preferred stock issuance costs |
(
|
|
|
|||||||||||||||||
| Stock purchase and compensation plans |
|
|
|
|||||||||||||||||
| End of year |
|
|
|
|||||||||||||||||
| Retained earnings: | ||||||||||||||||||||
| Beginning of year, as previously reported |
|
|
|
|||||||||||||||||
| Cumulative effect adjustment due to adoption of equity security guidance, net of tax |
|
|
|
|||||||||||||||||
| Cumulative effect adjustment due to adoption of stranded deferred tax guidance |
|
|
(
|
|||||||||||||||||
| Cumulative effect adjustment due to adoption of lease guidance, net of tax |
|
|
|
|||||||||||||||||
| Cumulative effect adjustment due to adoption of guidance on allowance for credit losses, net of tax (Note 3) |
|
|
|
|||||||||||||||||
| Balance at beginning of year, as adjusted |
|
|
|
|||||||||||||||||
| Net income |
|
|
|
|||||||||||||||||
| Dividends to preferred stockholders |
|
|
|
|||||||||||||||||
| Dividends to common stockholders |
(
|
(
|
(
|
|||||||||||||||||
| End of year |
|
|
|
|||||||||||||||||
| Accumulated other comprehensive income (loss): | ||||||||||||||||||||
| Beginning of year, as previously reported |
|
(
|
|
|||||||||||||||||
| Cumulative effect adjustment due to adoption of equity security guidance, net of tax |
|
|
(
|
|||||||||||||||||
| Cumulative effect adjustment due to adoption of stranded deferred tax guidance |
|
|
|
|||||||||||||||||
| Balance at beginning of year, as adjusted |
|
(
|
(
|
|||||||||||||||||
| Other comprehensive income (loss) |
|
|
(
|
|||||||||||||||||
| End of year |
|
|
(
|
|||||||||||||||||
| Treasury stock: | ||||||||||||||||||||
| Beginning of year |
(
|
(
|
(
|
|||||||||||||||||
| Acquisition of treasury stock |
(
|
(
|
(
|
|||||||||||||||||
| End of year |
(
|
(
|
(
|
|||||||||||||||||
| Total stockholders’ equity | $ |
|
|
|
||||||||||||||||
| Dividends declared per preferred share | $ |
|
|
|
||||||||||||||||
| Dividends declared per common share | $ |
|
|
|
||||||||||||||||
| Preferred Stock, shares outstanding: | ||||||||||||||||||||
| Beginning of year |
|
|
|
|||||||||||||||||
| Issuance of preferred stock |
|
|
|
|||||||||||||||||
| End of year |
|
|
|
|||||||||||||||||
| Common Stock, shares outstanding: | ||||||||||||||||||||
| Beginning of year |
|
|
|
|||||||||||||||||
| Dividend reinvestment plan |
|
|
|
|||||||||||||||||
| Stock purchase and compensation plan |
|
|
|
|||||||||||||||||
| Acquisition of treasury stock |
(
|
(
|
(
|
|||||||||||||||||
| End of year |
|
|
|
|||||||||||||||||
| Consolidated Statements of Cash Flows | ||||||||||||||||||||
| December 31, | ||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
| Operating Activities | ||||||||||||||||||||
| Net income | $ |
|
|
|
||||||||||||||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||||||
| Depreciation and amortization |
|
|
|
|||||||||||||||||
| Stock-based compensation expense |
|
|
|
|||||||||||||||||
| Undistributed gains of equity method investments |
(
|
(
|
(
|
|||||||||||||||||
| Distributions in excess of current year income of equity method investments |
|
|
|
|||||||||||||||||
| Net realized and unrealized losses (gains) |
|
(
|
|
|||||||||||||||||
| Loss on disposal of fixed assets |
|
|
|
|||||||||||||||||
| Changes in assets and liabilities: | ||||||||||||||||||||
| Increase in reserves for loss and loss expense, net of reinsurance recoverables |
|
|
|
|||||||||||||||||
| Increase in unearned premiums, net of prepaid reinsurance |
|
|
|
|||||||||||||||||
| Decrease in net federal income taxes |
|
|
|
|||||||||||||||||
| Increase in premiums receivable |
(
|
(
|
(
|
|||||||||||||||||
| Increase in deferred policy acquisition costs |
(
|
(
|
(
|
|||||||||||||||||
| Increase in interest and dividends due or accrued |
(
|
(
|
(
|
|||||||||||||||||
| Decrease in accrued salaries and benefits |
(
|
(
|
(
|
|||||||||||||||||
| Increase in other assets |
(
|
(
|
(
|
|||||||||||||||||
| Increase (decrease) in other liabilities |
|
|
(
|
|||||||||||||||||
| Net cash provided by operating activities |
|
|
|
|||||||||||||||||
| Investing Activities | ||||||||||||||||||||
| Purchase of fixed income securities, held-to-maturity |
|
|
(
|
|||||||||||||||||
| Purchase of fixed income securities, available-for-sale |
(
|
(
|
(
|
|||||||||||||||||
| Purchase of commercial mortgage loans |
(
|
|
|
|||||||||||||||||
| Purchase of equity securities |
(
|
(
|
(
|
|||||||||||||||||
| Purchase of other investments |
(
|
(
|
(
|
|||||||||||||||||
| Purchase of short-term investments |
(
|
(
|
(
|
|||||||||||||||||
| Sale of fixed income securities, available-for-sale |
|
|
|
|||||||||||||||||
| Proceeds from commercial mortgage loans |
|
|
|
|||||||||||||||||
| Sale of short-term investments |
|
|
|
|||||||||||||||||
| Redemption and maturities of fixed income securities, held-to-maturity |
|
|
|
|||||||||||||||||
| Redemption and maturities of fixed income securities, available-for-sale |
|
|
|
|||||||||||||||||
| Sale of equity securities |
|
|
|
|||||||||||||||||
| Sale of other investments |
|
|
|
|||||||||||||||||
| Distributions from other investments |
|
|
|
|||||||||||||||||
| Fixed asset disposals |
|
|
|
|||||||||||||||||
| Purchase of property and equipment |
(
|
(
|
(
|
|||||||||||||||||
| Net cash used in investing activities |
(
|
(
|
(
|
|||||||||||||||||
| Financing Activities | ||||||||||||||||||||
| Dividends to preferred stockholders |
|
|
|
|||||||||||||||||
| Dividends to common stockholders |
(
|
(
|
(
|
|||||||||||||||||
| Acquisition of treasury stock |
(
|
(
|
(
|
|||||||||||||||||
| Net proceeds from stock purchase and compensation plans |
|
|
|
|||||||||||||||||
| Preferred stock issued, net of issuance costs |
|
|
|
|||||||||||||||||
| Proceeds from borrowings |
|
|
|
|||||||||||||||||
| Repayment of borrowings |
(
|
(
|
(
|
|||||||||||||||||
| Repayment of finance lease obligations |
(
|
(
|
(
|
|||||||||||||||||
| Net cash provided by (used in) financing activities |
|
|
(
|
|||||||||||||||||
| Net increase (decrease) in cash and restricted cash |
|
(
|
(
|
|||||||||||||||||
| Cash and restricted cash, beginning of year |
|
|
|
|||||||||||||||||
| Cash and restricted cash, end of year | $ |
|
|
|
||||||||||||||||
| Security Type | Methodology | ||||
| Equity Securities; U.S. Treasury Notes | Equity and U.S. Treasury Note prices are received from an independent pricing service that are based on observable market transactions. We validate these prices against a second external pricing service, and if established market value comparison thresholds are breached, further analysis is performed to determine the price to be used. | ||||
| Short-Term Investments | Short-term investments are recorded at fair value. Given the liquid nature of our short-term investments, we generally validate their fair value by way of active trades within approximately one week of the financial statement close. | ||||
| Security Type | Methodology | ||||
| Corporate Securities including preferred stocks classified as Fixed Income Securities, and U.S. Government and Government Agencies | Evaluations include obtaining relevant trade data, benchmark quotes and spreads, and incorporating this information into either spread-based or price-based evaluations as determined by the observed market data. Spread-based evaluations include: (i) creating a range of spreads for relevant maturities of each issuer based on the new issue market, secondary trading, and dealer quotes; and (ii) incorporating option adjusted spreads for issues that have early redemption features. Based on the findings in (i) and (ii) above, final spreads are derived and added to benchmark curves. Price-based evaluations include matching each issue to its best-known market maker and contacting firms that transact in these securities. | ||||
| Obligations of States and Political Subdivisions | Evaluations are based on yield curves that are developed based on factors such as: (i) benchmarks to issues with interest rates near prevailing market rates; (ii) established trading spreads over widely-accepted market benchmarks; (iii) yields on new issues; and (iv) market information from third-party sources such as reportable trades, broker-dealers, or issuers. | ||||
| RMBS, CMBS, CLO and other ABS | Evaluations are based on a DCF, including: (i) generating cash flows for each tranche considering tranche-specific data, market data, and other pertinent information, such as historical performance of the underlying collateral, including net operating income generated by the underlying properties, conditional default rate assumptions, loan loss severity assumptions, consensus projections, prepayment projections, and actual pool and loan level collateral information; (ii) identifying applicable benchmark yields; and (iii) applying market-based tranche-specific spreads to determine an appropriate yield by incorporating collateral performance, tranche-level attributes, trades, bids, and offers. | ||||
| Foreign Government | Evaluations are performed using a DCF model and by incorporating observed market yields of benchmarks as inputs, adjusting for varied maturities. | ||||
| Security Type | Methodology | ||||
| CMLs | Evaluations are performed by a third-party and are based on matrix pricing. For fixed rate loans, the matrix process uses a yield build up approach to create a pricing yield, with components for base yield, credit quality spread, property type spread, and a weighted average life spread. Floating rate loans are priced with a target quality spread over the swap curve. | ||||
| Security Type | Methodology | ||||
|
7.25% Senior Notes; 6.70% Senior Notes;
5.375% Senior Notes |
Based on matrix pricing models prepared by external pricing services. | ||||
| Borrowings from Federal Home Loan Banks | Evaluations are performed using a DCF model based on current borrowing rates provided by the Federal Home Loan Banks that are consistent with the remaining term of the borrowing. | ||||
| Asset Category | Years | |||||||||||||
| Computer hardware |
|
|||||||||||||
| Computer software |
|
to |
|
|||||||||||
| Software licenses |
|
to |
|
|||||||||||
| Internally developed software |
|
|||||||||||||
| Furniture and fixtures |
|
|||||||||||||
| Buildings and improvements |
|
to |
|
|||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
| Cash paid during the period for: | ||||||||||||||||||||
| Interest | $ |
|
|
|
||||||||||||||||
| Federal income tax |
|
|
|
|||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||||||
| Operating cash flows from operating leases |
|
|
|
|||||||||||||||||
| Operating cash flows from financing leases |
|
|
|
|||||||||||||||||
| Financing cash flows from finance leases |
|
|
|
|||||||||||||||||
| Non-cash items: | ||||||||||||||||||||
|
Corporate actions related to fixed income securities, AFS
1
|
|
|
|
|||||||||||||||||
|
Corporate actions related to fixed income securities, HTM
1
|
|
|
|
|||||||||||||||||
|
Corporate actions related to equity securities
1
|
|
|
|
|||||||||||||||||
| Assets acquired under finance lease arrangements |
|
|
|
|||||||||||||||||
| Assets acquired under operating lease arrangements |
|
|
|
|||||||||||||||||
| Non-cash purchase of property and equipment |
|
|
|
|||||||||||||||||
| ($ in thousands) | December 31, 2020 | December 31, 2019 | ||||||||||||
| Cash | $ |
|
|
|||||||||||
| Restricted cash |
|
|
||||||||||||
| Total cash and restricted cash shown in the Statements of Cash Flows | $ |
|
|
|||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
| AFS securities: | ||||||||||||||||||||
| Fixed income securities | $ |
|
|
|
||||||||||||||||
| Total AFS securities |
|
|
|
|||||||||||||||||
| HTM securities: | ||||||||||||||||||||
| Fixed income securities |
|
|
|
|||||||||||||||||
| Total HTM securities |
|
|
|
|||||||||||||||||
| Short-term securities |
|
|
|
|||||||||||||||||
| Total net unrealized gains |
|
|
|
|||||||||||||||||
| Deferred income tax |
(
|
(
|
(
|
|||||||||||||||||
| Net unrealized gains, net of deferred income tax |
|
|
|
|||||||||||||||||
|
Cumulative effect adjustment due to accounting change for equity unrealized
1
|
|
|
|
|||||||||||||||||
|
Cumulative effect adjustment due to accounting changes for stranded tax assets
1
|
|
|
(
|
|||||||||||||||||
| Increase (decrease) in net unrealized gains in OCI, net of deferred income tax | $ |
|
|
(
|
||||||||||||||||
| December 31, 2020 | ||||||||||||||||||||||||||||||||
| Cost/ | ||||||||||||||||||||||||||||||||
| Amortized | Allowance for | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||
| ($ in thousands) | Cost | Credit Losses | Gains | Losses | Value | |||||||||||||||||||||||||||
| AFS fixed income securities: | ||||||||||||||||||||||||||||||||
| U.S. government and government agencies | $ |
|
|
|
(
|
|
||||||||||||||||||||||||||
| Foreign government |
|
(
|
|
(
|
|
|||||||||||||||||||||||||||
| Obligations of states and political subdivisions |
|
(
|
|
(
|
|
|||||||||||||||||||||||||||
| Corporate securities |
|
(
|
|
(
|
|
|||||||||||||||||||||||||||
| CLO and other ABS |
|
(
|
|
(
|
|
|||||||||||||||||||||||||||
| RMBS |
|
(
|
|
(
|
|
|||||||||||||||||||||||||||
| CMBS |
|
(
|
|
(
|
|
|||||||||||||||||||||||||||
| Total AFS fixed income securities | $ |
|
(
|
|
(
|
|
||||||||||||||||||||||||||
| December 31, 2019 | ||||||||||||||||||||||||||
| Cost/ | ||||||||||||||||||||||||||
| Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||||
| ($ in thousands) | Cost | Gains | Losses | Value | ||||||||||||||||||||||
| AFS fixed income securities: | ||||||||||||||||||||||||||
| U.S. government and government agencies | $ |
|
|
|
|
|||||||||||||||||||||
| Foreign government |
|
|
(
|
|
||||||||||||||||||||||
| Obligations of states and political subdivisions |
|
|
(
|
|
||||||||||||||||||||||
| Corporate securities |
|
|
(
|
|
||||||||||||||||||||||
| CLO and other ABS |
|
|
(
|
|
||||||||||||||||||||||
| RMBS |
|
|
(
|
|
||||||||||||||||||||||
| CMBS |
|
|
(
|
|
||||||||||||||||||||||
| Total AFS fixed income securities | $ |
|
|
(
|
|
|||||||||||||||||||||
| 2020 | |||||||||||||||||||||||||||||||||||
| ($ in thousands) | Beginning Balance | Current Provisions for Securities without Prior Allowance | Increase (Decrease) on Securities with Prior Allowance, excluding intent (or Requirements) to Sell Securities | Reductions for Securities Sold | Reductions for Securities Identified as Intent (or Requirement) to Sell during the Period | Ending Balance | |||||||||||||||||||||||||||||
| Foreign Government | $ |
|
|
|
(
|
|
|
||||||||||||||||||||||||||||
| Obligations of states and political subdivisons |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Corporate Securities |
|
|
|
(
|
(
|
|
|||||||||||||||||||||||||||||
| CLO and other ABS |
|
|
|
(
|
(
|
|
|||||||||||||||||||||||||||||
| RMBS |
|
|
|
(
|
|
|
|||||||||||||||||||||||||||||
| CMBS |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Total AFS fixed income securities | $ |
|
|
|
(
|
(
|
|
||||||||||||||||||||||||||||
| December 31, 2020 | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||
| ($ in thousands) |
Fair
Value |
Unrealized
Losses |
Fair
Value |
Unrealized
Losses |
Fair
Value |
Unrealized
Losses |
||||||||||||||||||||||||||||||||
| AFS fixed income securities: | ||||||||||||||||||||||||||||||||||||||
| U.S. government and government agencies | $ |
|
(
|
|
|
|
(
|
|||||||||||||||||||||||||||||||
| Foreign government |
|
(
|
|
|
|
(
|
||||||||||||||||||||||||||||||||
| Obligations of states and political subdivisions |
|
(
|
|
|
|
(
|
||||||||||||||||||||||||||||||||
| Corporate securities |
|
(
|
|
(
|
|
(
|
||||||||||||||||||||||||||||||||
| CLO and other ABS |
|
(
|
|
(
|
|
(
|
||||||||||||||||||||||||||||||||
| RMBS |
|
(
|
|
(
|
|
(
|
||||||||||||||||||||||||||||||||
| CMBS |
|
(
|
|
(
|
|
(
|
||||||||||||||||||||||||||||||||
| Total AFS fixed income securities | $ |
|
(
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||||
| December 31, 2019 | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||
| ($ in thousands) |
Fair
Value |
Unrealized
Losses |
Fair
Value |
Unrealized
Losses |
Fair
Value |
Unrealized
Losses |
||||||||||||||||||||||||||||||||
| AFS fixed income securities: | ||||||||||||||||||||||||||||||||||||||
| U.S. government and government agencies | $ |
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| Foreign government |
|
(
|
|
|
|
(
|
||||||||||||||||||||||||||||||||
| Obligations of states and political subdivisions |
|
(
|
|
|
|
(
|
||||||||||||||||||||||||||||||||
| Corporate securities |
|
(
|
|
(
|
|
(
|
||||||||||||||||||||||||||||||||
| CLO and other ABS |
|
(
|
|
(
|
|
(
|
||||||||||||||||||||||||||||||||
| RMBS |
|
(
|
|
(
|
|
(
|
||||||||||||||||||||||||||||||||
| CMBS |
|
(
|
|
(
|
|
(
|
||||||||||||||||||||||||||||||||
| Total AFS fixed income securities | $ |
|
(
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||||
| AFS | HTM | |||||||||||||||||||
| ($ in thousands) | Fair Value | Carrying Value | Fair Value | |||||||||||||||||
| Due in one year or less | $ |
|
|
|
||||||||||||||||
| Due after one year through five years |
|
|
|
|||||||||||||||||
| Due after five years through 10 years |
|
|
|
|||||||||||||||||
| Due after 10 years |
|
|
|
|||||||||||||||||
| Total fixed income securities | $ |
|
|
|
||||||||||||||||
| Other Investments | December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||
| ($ in thousands) |
Carrying
Value |
Remaining
Commitment |
Maximum
Exposure to Loss
1
|
Carrying
Value |
Remaining
Commitment |
Maximum
Exposure to Loss 1 |
||||||||||||||||||||||||||||||||
| Alternative Investments | ||||||||||||||||||||||||||||||||||||||
| Private equity | $ |
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| Private credit |
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| Real assets |
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| Total alternative investments |
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| Other securities |
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| Total other investments | $ |
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| Balance Sheet Information | ||||||||||||||
| December 31, | ||||||||||||||
| ($ in millions) | 2020 | 2019 | ||||||||||||
| Investments | $ |
|
|
|||||||||||
| Total assets |
|
|
||||||||||||
| Total liabilities |
|
|
||||||||||||
| Total partners’ capital |
|
|
||||||||||||
| Income Statement Information | ||||||||||||||||||||
| 12 months ended September 30, | ||||||||||||||||||||
| ($ in millions) | 2020 | 2019 | 2018 | |||||||||||||||||
| Net investment (loss) income | $ |
(
|
(
|
|
||||||||||||||||
| Realized gains |
|
|
|
|||||||||||||||||
| Net change in unrealized appreciation |
|
|
|
|||||||||||||||||
| Net income before tax | $ |
|
|
|
||||||||||||||||
| Alternative investment income included in "Net investment income earned" on our Consolidated Statements of Income |
|
|
|
|||||||||||||||||
| ($ in millions) | FHLBI Collateral | FHLBNY Collateral | State and Regulatory Deposits | Total | ||||||||||||||||||||||
| U.S. government and government agencies | $ |
|
|
|
|
|||||||||||||||||||||
| Obligations of states and political subdivisions |
|
|
|
|
||||||||||||||||||||||
| RMBS |
|
|
|
|
||||||||||||||||||||||
| CMBS |
|
|
|
|
||||||||||||||||||||||
| Total pledged as collateral | $ |
|
|
|
|
|||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
| Fixed income securities | $ |
|
|
|
||||||||||||||||
| CMLs |
|
|
|
|||||||||||||||||
| Equity securities |
|
|
|
|||||||||||||||||
| Short-term investments |
|
|
|
|||||||||||||||||
| Other investments |
|
|
|
|||||||||||||||||
| Investment expenses |
(
|
(
|
(
|
|||||||||||||||||
| Net investment income earned | $ |
|
|
|
||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
| Gross gains on sales | $ |
|
|
|
||||||||||||||||
| Gross losses on sales |
(
|
(
|
(
|
|||||||||||||||||
| Net realized gains (losses) on disposals |
|
|
(
|
|||||||||||||||||
| Net unrealized gains (losses) on equity securities |
|
(
|
(
|
|||||||||||||||||
| Net credit loss (expense) benefit on fixed maturities, AFS |
(
|
|||||||||||||||||||
| Net credit loss benefit (expense) on fixed maturities, HTM |
|
|||||||||||||||||||
| Losses on securities for which we have the intent to sell |
(
|
|||||||||||||||||||
| Net OTTI losses recognized in earnings |
(
|
(
|
||||||||||||||||||
| Net realized and unrealized gains (losses) | $ |
(
|
|
(
|
||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
| Unrealized gains (losses) recognized in income on equity securities: | ||||||||||||||||||||
| On securities remaining in our portfolio at end of period | $ |
|
|
(
|
||||||||||||||||
| On securities sold in period |
|
(
|
(
|
|||||||||||||||||
| Total unrealized (losses) recognized in income on equity securities | $ |
|
(
|
(
|
||||||||||||||||
| 2020 | ||||||||||||||||||||
| ($ in thousands) | Gross | Tax | Net | |||||||||||||||||
| Net income | $ |
|
|
|
||||||||||||||||
| Components of OCI: | ||||||||||||||||||||
|
Unrealized gains (losses) on investment securities
:
|
||||||||||||||||||||
| Unrealized holding gains during the year |
|
|
|
|||||||||||||||||
| Unrealized losses on securities with credit loss recognized in earnings |
(
|
(
|
(
|
|||||||||||||||||
| Amounts reclassified into net income: | ||||||||||||||||||||
| HTM securities |
(
|
(
|
(
|
|||||||||||||||||
| Net realized losses on disposals and losses on intent-to-sell AFS securities |
|
|
|
|||||||||||||||||
| Credit loss expense |
|
|
|
|||||||||||||||||
| Total unrealized gains on investment securities |
|
|
|
|||||||||||||||||
| Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
| Net actuarial gain |
|
|
|
|||||||||||||||||
|
Amounts reclassified into net income:
|
||||||||||||||||||||
| Net actuarial loss |
|
|
|
|||||||||||||||||
| Total defined benefit pension and post-retirement plans |
|
|
|
|||||||||||||||||
| Other comprehensive income |
|
|
|
|||||||||||||||||
| Comprehensive income | $ |
|
|
|
||||||||||||||||
| 2019 | ||||||||||||||||||||
| ($ in thousands) | Gross | Tax | Net | |||||||||||||||||
| Net income | $ |
|
|
|
||||||||||||||||
| Components of OCI: | ||||||||||||||||||||
|
Unrealized gains (losses) on investment securities
:
|
||||||||||||||||||||
| Unrealized holding gains during the year |
|
|
|
|||||||||||||||||
| Amounts reclassified into net income: | ||||||||||||||||||||
| HTM securities |
(
|
(
|
(
|
|||||||||||||||||
| Realized losses on disposals and OTTI of AFS securities |
|
|
|
|||||||||||||||||
| Total unrealized gains on investment securities |
|
|
|
|||||||||||||||||
| Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
| Net actuarial loss |
(
|
(
|
(
|
|||||||||||||||||
|
Amounts reclassified into net income:
|
||||||||||||||||||||
| Net actuarial loss |
|
|
|
|||||||||||||||||
| Total defined benefit pension and post-retirement plans |
(
|
(
|
(
|
|||||||||||||||||
| Other comprehensive income |
|
|
|
|||||||||||||||||
| Comprehensive income | $ |
|
|
|
||||||||||||||||
| 2018 | ||||||||||||||||||||
| ($ in thousands) | Gross | Tax | Net | |||||||||||||||||
| Net income | $ |
|
|
|
||||||||||||||||
| Components of OCI: | ||||||||||||||||||||
|
Unrealized (losses) gains on investment securities
:
|
||||||||||||||||||||
| Unrealized holding losses during the year |
(
|
(
|
(
|
|||||||||||||||||
| Amounts reclassified into net income: | ||||||||||||||||||||
| HTM securities |
|
|
|
|||||||||||||||||
| Realized losses on disposals and OTTI of AFS securities |
|
|
|
|||||||||||||||||
| Total unrealized losses on investment securities |
(
|
(
|
(
|
|||||||||||||||||
| Defined benefit pension and post-retirement plans: | ||||||||||||||||||||
| Net actuarial loss |
(
|
(
|
(
|
|||||||||||||||||
|
Amounts reclassified into net income:
|
||||||||||||||||||||
| Net actuarial loss |
|
|
|
|||||||||||||||||
| Total defined benefit pension and post-retirement plans |
(
|
(
|
(
|
|||||||||||||||||
| Other comprehensive loss |
(
|
(
|
(
|
|||||||||||||||||
| Comprehensive income | $ |
|
|
|
||||||||||||||||
| Net Unrealized (Losses) Gains on Investment Securities | Defined Benefit Pension and Post-retirement Plans | |||||||||||||||||||||||||||||||||||||
| ($ in thousands) |
Credit Loss Related
1
|
HTM Related | All Other | Investments Subtotal | Total AOCI | |||||||||||||||||||||||||||||||||
| Balance, December 31, 2018 | $ |
(
|
|
|
|
(
|
(
|
|||||||||||||||||||||||||||||||
| OCI before reclassifications |
|
|
|
|
(
|
|
||||||||||||||||||||||||||||||||
| Amounts reclassified from AOCI |
|
(
|
|
|
|
|
||||||||||||||||||||||||||||||||
| Net current period OCI |
|
(
|
|
|
(
|
|
||||||||||||||||||||||||||||||||
| Balance, December 31, 2019 |
(
|
|
|
|
(
|
|
||||||||||||||||||||||||||||||||
| OCI before reclassifications |
(
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| Amounts reclassified from AOCI |
|
(
|
|
|
|
|
||||||||||||||||||||||||||||||||
| Net current period OCI |
(
|
(
|
|
|
|
|
||||||||||||||||||||||||||||||||
| Balance, December 31, 2020 | $ |
(
|
|
|
|
(
|
|
|||||||||||||||||||||||||||||||
| ($ in thousands) | Year ended December 31, 2020 | Year ended December 31, 2019 | Affected Line Item in the Consolidated Statements of Income | |||||||||||||||||
| HTM related | ||||||||||||||||||||
| Unrealized gains on HTM disposals | $ |
(
|
(
|
Net realized and unrealized investment (losses) gains | ||||||||||||||||
| Amortization of net unrealized gains on HTM securities |
(
|
(
|
Net investment income earned | |||||||||||||||||
|
(
|
(
|
Income before federal income tax | ||||||||||||||||||
|
|
|
Total federal income tax expense | ||||||||||||||||||
|
(
|
(
|
Net income | ||||||||||||||||||
| Net realized losses on disposals and losses on intent-to-sell AFS securities | ||||||||||||||||||||
| Net realized losses on disposals and losses on intent-to-sell AFS securities |
|
|
Net realized and unrealized investment (losses) gains | |||||||||||||||||
|
|
|
Income before federal income tax | ||||||||||||||||||
|
(
|
(
|
Total federal income tax expense | ||||||||||||||||||
|
|
|
Net income | ||||||||||||||||||
| Credit loss related | ||||||||||||||||||||
| Credit loss expense |
|
|
Net realized and unrealized investment (losses) gains | |||||||||||||||||
|
|
|
Income before federal income tax | ||||||||||||||||||
|
(
|
|
Total federal income tax expense | ||||||||||||||||||
|
|
|
Net income | ||||||||||||||||||
| Defined benefit pension and post-retirement life plans | ||||||||||||||||||||
| Net actuarial loss |
|
|
Loss and loss expense incurred | |||||||||||||||||
|
|
|
Other insurance expenses | ||||||||||||||||||
| Total defined benefit pension and post-retirement life |
|
|
Income before federal income tax | |||||||||||||||||
|
(
|
(
|
Total federal income tax expense | ||||||||||||||||||
|
|
|
Net income | ||||||||||||||||||
| Total reclassifications for the period | $ |
|
|
Net income | ||||||||||||||||
| December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||
| ($ in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||||
| Financial Liabilities | ||||||||||||||||||||||||||
| Long-term debt: | ||||||||||||||||||||||||||
| 7.25% Senior Notes | $ |
|
|
|
|
|||||||||||||||||||||
| 6.70% Senior Notes |
|
|
|
|
||||||||||||||||||||||
| 5.375% Senior Notes |
|
|
|
|
||||||||||||||||||||||
| 1.61% Borrowings from FHLBNY |
|
|
|
|
||||||||||||||||||||||
| 1.56% Borrowings from FHLBNY |
|
|
|
|
||||||||||||||||||||||
| 3.03% Borrowings from FHLBI |
|
|
|
|
||||||||||||||||||||||
| Subtotal long-term debt |
|
|
|
|
||||||||||||||||||||||
| Unamortized debt issuance costs |
(
|
(
|
||||||||||||||||||||||||
| Finance lease obligations |
|
|
||||||||||||||||||||||||
| Total long-term debt | $ |
|
$ |
|
||||||||||||||||||||||
| December 31, 2020 | Fair Value Measurements Using | |||||||||||||||||||||||||
| ($ in thousands) | Assets Measured at Fair Value |
Quoted Prices in Active Markets for Identical Assets/ Liabilities
(Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs
(Level 3) |
||||||||||||||||||||||
| Description | ||||||||||||||||||||||||||
| Measured on a recurring basis: | ||||||||||||||||||||||||||
| AFS fixed income securities: | ||||||||||||||||||||||||||
| U.S. government and government agencies | $ |
|
|
|
|
|||||||||||||||||||||
| Foreign government |
|
|
|
|
||||||||||||||||||||||
| Obligations of states and political subdivisions |
|
|
|
|
||||||||||||||||||||||
| Corporate securities |
|
|
|
|
||||||||||||||||||||||
| CLO and other ABS |
|
|
|
|
||||||||||||||||||||||
| RMBS |
|
|
|
|
||||||||||||||||||||||
| CMBS |
|
|
|
|
||||||||||||||||||||||
| Total AFS fixed income securities |
|
|
|
|
||||||||||||||||||||||
| Equity securities: | ||||||||||||||||||||||||||
|
Common stock
1
|
|
|
|
|
||||||||||||||||||||||
| Preferred stock |
|
|
|
|
||||||||||||||||||||||
| Total equity securities |
|
|
|
|
||||||||||||||||||||||
| Short-term investments |
|
|
|
|
||||||||||||||||||||||
| Total assets measured at fair value | $ |
|
|
|
|
|||||||||||||||||||||
| December 31, 2019 | Fair Value Measurements Using | |||||||||||||||||||||||||
| ($ in thousands) | Assets Measured at Fair Value |
Quoted Prices in Active Markets for Identical Assets/ Liabilities
(Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs
(Level 3) |
||||||||||||||||||||||
| Description | ||||||||||||||||||||||||||
| Measured on a recurring basis: | ||||||||||||||||||||||||||
| AFS fixed income securities: | ||||||||||||||||||||||||||
| U.S. government and government agencies | $ |
|
|
|
|
|||||||||||||||||||||
| Foreign government |
|
|
|
|
||||||||||||||||||||||
| Obligations of states and political subdivisions |
|
|
|
|
||||||||||||||||||||||
| Corporate securities |
|
|
|
|
||||||||||||||||||||||
| CLO and other ABS |
|
|
|
|
||||||||||||||||||||||
| RMBS |
|
|
|
|
||||||||||||||||||||||
| CMBS |
|
|
|
|
||||||||||||||||||||||
| Total AFS fixed income securities |
|
|
|
|
||||||||||||||||||||||
| Equity securities: | ||||||||||||||||||||||||||
|
Common stock
1
|
|
|
|
|
||||||||||||||||||||||
| Preferred stock |
|
|
|
|
||||||||||||||||||||||
| Total equity securities |
|
|
|
|
||||||||||||||||||||||
| Short-term investments |
|
|
|
|
||||||||||||||||||||||
| Total assets measured at fair value | $ |
|
|
|
|
|||||||||||||||||||||
| 2020 | |||||||||||||||||||||||
| ($ in thousands) | Obligations of states and political subdivisions | Corporate Securities | CLO and Other ABS | Total | |||||||||||||||||||
| Fair value, December 31, 2019 | $ |
|
|
|
|
||||||||||||||||||
| Total net (losses) gains for the period included in: | |||||||||||||||||||||||
| OCI |
|
(
|
|
|
|||||||||||||||||||
| Net realized and unrealized (losses) gains |
|
(
|
(
|
(
|
|||||||||||||||||||
| Net investment income earned |
|
|
|
|
|||||||||||||||||||
| Purchases |
|
|
|
|
|||||||||||||||||||
| Sales |
|
|
|
|
|||||||||||||||||||
| Issuances |
|
|
|
|
|||||||||||||||||||
| Settlements |
|
(
|
(
|
(
|
|||||||||||||||||||
| Transfers into Level 3 |
|
|
|
|
|||||||||||||||||||
| Transfers out of Level 3 |
|
|
(
|
(
|
|||||||||||||||||||
| Fair value, December 31, 2020 | $ |
|
|
|
|
||||||||||||||||||
| Change in unrealized (losses) gains for the period included in earnings for assets held at period end |
|
(
|
(
|
(
|
|||||||||||||||||||
| Change in unrealized gains (losses) for the period included in OCI for assets held at period end |
|
(
|
|
|
|||||||||||||||||||
| 2019 | ||||||||||||||||||||
| ($ in thousands) | Corporate Securities | CLO and Other ABS | Total | |||||||||||||||||
| Fair value, December 31, 2018 |
|
|
|
|||||||||||||||||
| Total net (losses) gains for the period included in: | ||||||||||||||||||||
| OCI |
(
|
(
|
(
|
|||||||||||||||||
| Net realized and unrealized (losses) gains |
|
|
|
|||||||||||||||||
| Net investment income earned |
|
|
|
|||||||||||||||||
| Purchases |
|
|
|
|||||||||||||||||
| Sales |
|
|
|
|||||||||||||||||
| Issuances |
|
|
|
|||||||||||||||||
| Settlements |
|
(
|
(
|
|||||||||||||||||
| Transfers into Level 3 |
|
|
|
|||||||||||||||||
| Transfers out of Level 3 |
|
(
|
(
|
|||||||||||||||||
| Fair value, December 31, 2019 |
|
|
|
|||||||||||||||||
| Change in unrealized gains (losses) for the period included in earnings for assets held at period end |
|
|
|
|||||||||||||||||
| December 31, 2020 | Fair Value Measurements Using | |||||||||||||||||||||||||
| ($ in thousands) |
Assets/Liabilities Disclosed at
Fair Value |
Quoted Prices in Active Markets for Identical Assets/Liabilities
(Level 1) |
Significant Other Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
||||||||||||||||||||||
| Financial Assets | ||||||||||||||||||||||||||
| HTM: | ||||||||||||||||||||||||||
| Obligations of states and political subdivisions | $ |
|
|
|
|
|||||||||||||||||||||
| Corporate securities |
|
|
|
|
||||||||||||||||||||||
| Total HTM fixed income securities | $ |
|
|
|
|
|||||||||||||||||||||
| CMLs | $ |
|
|
|
|
|||||||||||||||||||||
| Financial Liabilities | ||||||||||||||||||||||||||
| Long-term debt: | ||||||||||||||||||||||||||
| 7.25% Senior Notes | $ |
|
|
|
|
|||||||||||||||||||||
| 6.70% Senior Notes |
|
|
|
|
||||||||||||||||||||||
| 5.375% Senior Notes |
|
|
|
|
||||||||||||||||||||||
| 1.61% Borrowings from FHLBNY |
|
|
|
|
||||||||||||||||||||||
| 1.56% Borrowings from FHLBNY |
|
|
|
|
||||||||||||||||||||||
| 3.03% Borrowings from FHLBI |
|
|
|
|
||||||||||||||||||||||
| Total long-term debt | $ |
|
|
|
|
|||||||||||||||||||||
| December 31, 2019 | Fair Value Measurements Using | |||||||||||||||||||||||||
| ($ in thousands) |
Assets/Liabilities Disclosed at
Fair Value |
Quoted Prices in Active Markets for Identical Assets/Liabilities
(Level 1) |
Significant Other Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
||||||||||||||||||||||
| Financial Assets | ||||||||||||||||||||||||||
| HTM: | ||||||||||||||||||||||||||
| Obligations of states and political subdivisions | $ |
|
|
|
|
|||||||||||||||||||||
| Corporate securities |
|
|
|
|
||||||||||||||||||||||
| Total HTM fixed income securities | $ |
|
|
|
|
|||||||||||||||||||||
| Financial Liabilities | ||||||||||||||||||||||||||
| Long-term debt: | ||||||||||||||||||||||||||
| 7.25% Senior Notes | $ |
|
|
|
|
|||||||||||||||||||||
| 6.70% Senior Notes |
|
|
|
|
||||||||||||||||||||||
| 5.375% Senior Notes |
|
|
|
|
||||||||||||||||||||||
| 1.61% Borrowings from FHLBNY |
|
|
|
|
||||||||||||||||||||||
| 1.56% Borrowings from FHLBNY |
|
|
|
|
||||||||||||||||||||||
| 3.03% Borrowings from FHLBI |
|
|
|
|
||||||||||||||||||||||
| Total long-term debt | $ |
|
|
|
|
|||||||||||||||||||||
| ($ in thousands) | December 31, 2020 | |||||||
| Balance at beginning of year | $ |
|
||||||
|
Cumulative effect adjustment
1
|
|
|||||||
| Balance at beginning of year, as adjusted | $ |
|
||||||
| Current period provision for expected credit losses |
|
|||||||
| Write-offs charged against the allowance for credit losses |
(
|
|||||||
| Recoveries |
|
|||||||
| ACL, end of year | $ |
|
||||||
| December 31, 2020 | ||||||||||||||||||||
| ($ in thousands) | Current | Past Due | Total Reinsurance Recoverables | |||||||||||||||||
| Financial strength rating of rated reinsurers | ||||||||||||||||||||
| A++ | $ |
|
$ |
|
$ |
|
||||||||||||||
| A+ |
|
|
|
|||||||||||||||||
| A |
|
|
|
|||||||||||||||||
| A- |
|
|
|
|||||||||||||||||
| B++ |
|
|
|
|||||||||||||||||
| B+ |
|
|
|
|||||||||||||||||
| Total rated reinsurers | $ |
|
$ |
|
$ |
|
||||||||||||||
| Non-rated reinsurers | ||||||||||||||||||||
| Federal and state pools | $ |
|
$ |
|
$ |
|
||||||||||||||
| Other than federal and state pools |
|
|
|
|||||||||||||||||
| Total non-rated reinsurers | $ |
|
$ |
|
$ |
|
||||||||||||||
| Total reinsurance recoverable, gross | $ |
|
$ |
|
$ |
|
||||||||||||||
| Less: ACL |
(
|
|||||||||||||||||||
| Total reinsurance recoverable, net | $ |
|
||||||||||||||||||
| ($ in thousands) | December 31, 2020 | |||||||
| Balance at beginning of year | $ |
|
||||||
|
Cumulative effect adjustment
1
|
(
|
|||||||
| Balance at beginning of year, as adjusted | $ |
|
||||||
| Current period provision for expected credit losses |
|
|||||||
| Write-offs charged against the allowance for credit losses |
|
|||||||
| Recoveries |
|
|||||||
| ACL, end of year | $ |
|
||||||
|
As of
December 31, 2020 |
As of December 31, 2019 | |||||||||||||||||||||||||
| ($ in thousands) | Reinsurance Balances | % of Reinsurance Balance | Reinsurance Balances | % of Reinsurance Balance | ||||||||||||||||||||||
| Total reinsurance recoverables | $ |
|
$ |
|
||||||||||||||||||||||
| Total prepaid reinsurance premiums |
|
|
||||||||||||||||||||||||
| Total reinsurance balance |
|
|
||||||||||||||||||||||||
|
Federal and state pools
1
:
|
||||||||||||||||||||||||||
| NFIP |
|
|
% |
|
|
|||||||||||||||||||||
| New Jersey Unsatisfied Claim Judgment Fund |
|
|
|
|
||||||||||||||||||||||
| Other |
|
|
|
|
||||||||||||||||||||||
| Total federal and state pools |
|
|
|
|
||||||||||||||||||||||
| Remaining reinsurance balance | $ |
|
|
$ |
|
|
||||||||||||||||||||
| Munich Re Group (AM Best rated "A+") | $ |
|
|
$ |
|
|
||||||||||||||||||||
| Hannover Ruckversicherungs AG (AM Best rated "A+") |
|
|
|
|
||||||||||||||||||||||
| AXIS Reinsurance Company (AM Best rated "A") |
|
|
|
|
||||||||||||||||||||||
| Swiss Re Group (AM Best rated "A+") |
|
|
|
|
||||||||||||||||||||||
| Transatlantic Reinsurance Company (AM Best rated “A+”) |
|
|
|
|
||||||||||||||||||||||
| All other reinsurers |
|
|
|
|
||||||||||||||||||||||
| Total reinsurers |
|
|
% |
|
|
% | ||||||||||||||||||||
|
Less: collateral
2
|
(
|
(
|
||||||||||||||||||||||||
| Reinsurers, net of collateral | $ |
|
$ |
|
||||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
| Premiums written: | ||||||||||||||||||||
| Direct | $ |
|
|
|
||||||||||||||||
| Assumed |
|
|
|
|||||||||||||||||
| Ceded |
(
|
(
|
(
|
|||||||||||||||||
| Net | $ |
|
|
|
||||||||||||||||
| Premiums earned: | ||||||||||||||||||||
| Direct | $ |
|
|
|
||||||||||||||||
| Assumed |
|
|
|
|||||||||||||||||
| Ceded |
(
|
(
|
(
|
|||||||||||||||||
| Net | $ |
|
|
|
||||||||||||||||
| Loss and loss expense incurred: | ||||||||||||||||||||
| Direct | $ |
|
|
|
||||||||||||||||
| Assumed |
|
|
|
|||||||||||||||||
| Ceded |
(
|
(
|
(
|
|||||||||||||||||
| Net | $ |
|
|
|
||||||||||||||||
| Ceded to NFIP ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
| Ceded premiums written | $ |
(
|
(
|
(
|
||||||||||||||||
| Ceded premiums earned |
(
|
(
|
(
|
|||||||||||||||||
| Ceded loss and loss expense incurred |
(
|
(
|
(
|
|||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
| Gross reserves for loss and loss expense, at beginning of year | $ |
|
|
|
||||||||||||||||
|
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year
1
|
|
|
|
|||||||||||||||||
| Net reserves for loss and loss expense, at beginning of year |
|
|
|
|||||||||||||||||
| Incurred loss and loss expense for claims occurring in the: | ||||||||||||||||||||
| Current year |
|
|
|
|||||||||||||||||
| Prior years |
(
|
(
|
(
|
|||||||||||||||||
| Total incurred loss and loss expense |
|
|
|
|||||||||||||||||
| Paid loss and loss expense for claims occurring in the: | ||||||||||||||||||||
| Current year |
|
|
|
|||||||||||||||||
| Prior years |
|
|
|
|||||||||||||||||
| Total paid loss and loss expense |
|
|
|
|||||||||||||||||
| Net reserves for loss and loss expense, at end of year |
|
|
|
|||||||||||||||||
| Add: Reinsurance recoverable on unpaid loss and loss expense, at end of year |
|
|
|
|||||||||||||||||
| Gross reserves for loss and loss expense at end of year | $ |
|
|
|
||||||||||||||||
| (Favorable)/Unfavorable Prior Year Development | ||||||||||||||||||||
| ($ in millions) | 2020 | 2019 | 2018 | |||||||||||||||||
| General Liability | $ |
(
|
(
|
(
|
||||||||||||||||
| Commercial Automobile |
|
|
|
|||||||||||||||||
| Workers Compensation |
(
|
(
|
(
|
|||||||||||||||||
| Businessowners' Policies |
|
|
(
|
|||||||||||||||||
| Commercial Property |
|
|
|
|||||||||||||||||
| Homeowners |
|
|
|
|||||||||||||||||
| Personal Automobile |
(
|
|
|
|||||||||||||||||
| E&S Casualty Lines |
|
|
|
|||||||||||||||||
| E&S Property Lines |
(
|
|
(
|
|||||||||||||||||
| Other |
|
|
(
|
|||||||||||||||||
| Total | $ |
(
|
(
|
(
|
||||||||||||||||
| 2020 | ||||||||||||||
| ($ in millions) | Gross | Net | ||||||||||||
| Asbestos | $ |
|
|
|||||||||||
| Landfill sites |
|
|
||||||||||||
| Underground storage tanks |
|
|
||||||||||||
| Total | $ |
|
|
|||||||||||
| 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||
| ($ in thousands) | Gross | Net | Gross | Net | Gross | Net | ||||||||||||||||||||||||||||||||
| Asbestos | ||||||||||||||||||||||||||||||||||||||
| Reserves for loss and loss expense at beginning of year | $ |
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| Incurred loss and loss expense |
|
|
(
|
(
|
|
|
||||||||||||||||||||||||||||||||
| Less: loss and loss expense paid |
(
|
(
|
(
|
(
|
(
|
(
|
||||||||||||||||||||||||||||||||
| Reserves for loss and loss expense at the end of year | $ |
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| Environmental | ||||||||||||||||||||||||||||||||||||||
| Reserves for loss and loss expense at beginning of year | $ |
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| Incurred loss and loss expense |
(
|
(
|
|
|
|
|
||||||||||||||||||||||||||||||||
| Less: loss and loss expense paid |
|
|
(
|
(
|
(
|
(
|
||||||||||||||||||||||||||||||||
| Reserves for loss and loss expense at the end of year | $ |
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| Total Asbestos and Environmental Claims | ||||||||||||||||||||||||||||||||||||||
| Reserves for loss and loss expense at beginning of year | $ |
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| Incurred loss and loss expense |
(
|
(
|
|
|
|
|
||||||||||||||||||||||||||||||||
| Less: loss and loss expense paid |
(
|
(
|
(
|
(
|
(
|
(
|
||||||||||||||||||||||||||||||||
| Reserves for loss and loss expense at the end of year | $ |
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
|
All Lines
(in thousands, except for claim counts)
|
|||||||||||||||||||||||||||||||||||||||||
| Incurred Loss and Allocated Loss Expenses, Net of Reinsurance |
As of
December 31, 2020 |
||||||||||||||||||||||||||||||||||||||||
| Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||||||||||||||||||
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||||
| 2011 | $ |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
| 2012 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
| 2013 |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| 2014 |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| 2015 |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
| 2016 |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
| 2017 |
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
| 2018 |
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
| 2019 |
|
|
|
|
|||||||||||||||||||||||||||||||||||||
| 2020 |
|
|
|
||||||||||||||||||||||||||||||||||||||
| Total |
|
||||||||||||||||||||||||||||||||||||||||
|
All Lines
(in thousands)
|
||||||||||||||||||||||||||||||||
| Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||
| Accident Year | Unaudited | |||||||||||||||||||||||||||||||
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||
| 2011 | $ |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| 2012 |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| 2013 |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
| 2014 |
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| 2015 |
|
|
|
|
|
|
||||||||||||||||||||||||||
| 2016 |
|
|
|
|
|
|||||||||||||||||||||||||||
| 2017 |
|
|
|
|
||||||||||||||||||||||||||||
| 2018 |
|
|
|
|||||||||||||||||||||||||||||
| 2019 |
|
|
||||||||||||||||||||||||||||||
| 2020 |
|
|||||||||||||||||||||||||||||||
| Total |
|
|||||||||||||||||||||||||||||||
| All outstanding liabilities before 2011, net of reinsurance |
|
|||||||||||||||||||||||||||||||
| Liabilities for loss and loss expenses, net of reinsurance |
|
|||||||||||||||||||||||||||||||
|
General Liability
(in thousands, except for claim counts)
|
|||||||||||||||||||||||||||||||||||||||||
| Incurred Loss and Allocated Loss Expenses, Net of Reinsurance |
As of
December 31, 2020 |
||||||||||||||||||||||||||||||||||||||||
| Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||||||||||||||||||
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||||
| 2011 | $ |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
| 2012 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
| 2013 |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| 2014 |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| 2015 |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
| 2016 |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
| 2017 |
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
| 2018 |
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
| 2019 |
|
|
|
|
|||||||||||||||||||||||||||||||||||||
| 2020 |
|
|
|
||||||||||||||||||||||||||||||||||||||
| Total |
|
||||||||||||||||||||||||||||||||||||||||
|
General Liability
(in thousands)
|
||||||||||||||||||||||||||||||||
| Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||
| Accident Year | Unaudited | |||||||||||||||||||||||||||||||
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||
| 2011 | $ |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| 2012 |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| 2013 |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
| 2014 |
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| 2015 |
|
|
|
|
|
|
||||||||||||||||||||||||||
| 2016 |
|
|
|
|
|
|||||||||||||||||||||||||||
| 2017 |
|
|
|
|
||||||||||||||||||||||||||||
| 2018 |
|
|
|
|||||||||||||||||||||||||||||
| 2019 |
|
|
||||||||||||||||||||||||||||||
| 2020 |
|
|||||||||||||||||||||||||||||||
| Total |
|
|||||||||||||||||||||||||||||||
| All outstanding liabilities before 2011, net of reinsurance |
|
|||||||||||||||||||||||||||||||
| Liabilities for loss and loss expenses, net of reinsurance |
|
|||||||||||||||||||||||||||||||
|
Workers Compensation
(in thousands, except for claim counts)
|
|||||||||||||||||||||||||||||||||||||||||
| Incurred Loss and Allocated Loss Expenses, Net of Reinsurance |
As of
December 31, 2020 |
||||||||||||||||||||||||||||||||||||||||
| Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||||||||||||||||||
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||||
| 2011 | $ |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
| 2012 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
| 2013 |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| 2014 |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| 2015 |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
| 2016 |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
| 2017 |
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
| 2018 |
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
| 2019 |
|
|
|
|
|||||||||||||||||||||||||||||||||||||
| 2020 |
|
|
|
||||||||||||||||||||||||||||||||||||||
| Total |
|
||||||||||||||||||||||||||||||||||||||||
|
Workers Compensation
(in thousands)
|
||||||||||||||||||||||||||||||||
| Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||
| Accident Year | Unaudited | |||||||||||||||||||||||||||||||
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||
| 2011 | $ |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| 2012 |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| 2013 |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
| 2014 |
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| 2015 |
|
|
|
|
|
|
||||||||||||||||||||||||||
| 2016 |
|
|
|
|
|
|||||||||||||||||||||||||||
| 2017 |
|
|
|
|
||||||||||||||||||||||||||||
| 2018 |
|
|
|
|||||||||||||||||||||||||||||
| 2019 |
|
|
||||||||||||||||||||||||||||||
| 2020 |
|
|||||||||||||||||||||||||||||||
| Total |
|
|||||||||||||||||||||||||||||||
| All outstanding liabilities before 2011, net of reinsurance |
|
|||||||||||||||||||||||||||||||
| Liabilities for loss and loss expenses, net of reinsurance |
|
|||||||||||||||||||||||||||||||
|
Commercial Automobile
(in thousands, except for claim counts)
|
|||||||||||||||||||||||||||||||||||||||||
| Incurred Loss and Allocated Loss Expenses, Net of Reinsurance |
As of
December 31, 2020 |
||||||||||||||||||||||||||||||||||||||||
| Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||||||||||||||||||
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||||
| 2011 | $ |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
| 2012 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
| 2013 |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| 2014 |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| 2015 |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
| 2016 |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
| 2017 |
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
| 2018 |
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
| 2019 |
|
|
|
|
|||||||||||||||||||||||||||||||||||||
| 2020 |
|
|
|
||||||||||||||||||||||||||||||||||||||
| Total |
|
||||||||||||||||||||||||||||||||||||||||
|
Commercial Automobile
(in thousands)
|
||||||||||||||||||||||||||||||||
| Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||
| Accident Year | Unaudited | |||||||||||||||||||||||||||||||
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||
| 2011 | $ |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| 2012 |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| 2013 |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
| 2014 |
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| 2015 |
|
|
|
|
|
|
||||||||||||||||||||||||||
| 2016 |
|
|
|
|
|
|||||||||||||||||||||||||||
| 2017 |
|
|
|
|
||||||||||||||||||||||||||||
| 2018 |
|
|
|
|||||||||||||||||||||||||||||
| 2019 |
|
|
||||||||||||||||||||||||||||||
| 2020 |
|
|||||||||||||||||||||||||||||||
| Total |
|
|||||||||||||||||||||||||||||||
| All outstanding liabilities before 2011, net of reinsurance |
|
|||||||||||||||||||||||||||||||
| Liabilities for loss and loss expenses, net of reinsurance |
|
|||||||||||||||||||||||||||||||
|
Businessowners' Policies
(in thousands, except for claim counts)
|
|||||||||||||||||||||||||||||||||||||||||
| Incurred Loss and Allocated Loss Expenses, Net of Reinsurance |
As of
December 31, 2020 |
||||||||||||||||||||||||||||||||||||||||
| Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||||||||||||||||||
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||||
| 2011 | $ |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
| 2012 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
| 2013 |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| 2014 |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| 2015 |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
| 2016 |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
| 2017 |
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
| 2018 |
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
| 2019 |
|
|
|
|
|||||||||||||||||||||||||||||||||||||
| 2020 |
|
|
|
||||||||||||||||||||||||||||||||||||||
| Total |
|
||||||||||||||||||||||||||||||||||||||||
|
Businessowners' Policies
(in thousands)
|
||||||||||||||||||||||||||||||||
| Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||
| Accident Year | Unaudited | |||||||||||||||||||||||||||||||
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||
| 2011 | $ |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| 2012 |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| 2013 |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
| 2014 |
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| 2015 |
|
|
|
|
|
|
||||||||||||||||||||||||||
| 2016 |
|
|
|
|
|
|||||||||||||||||||||||||||
| 2017 |
|
|
|
|
||||||||||||||||||||||||||||
| 2018 |
|
|
|
|||||||||||||||||||||||||||||
| 2019 |
|
|
||||||||||||||||||||||||||||||
| 2020 |
|
|||||||||||||||||||||||||||||||
| Total |
|
|||||||||||||||||||||||||||||||
| All outstanding liabilities before 2011, net of reinsurance |
|
|||||||||||||||||||||||||||||||
| Liabilities for loss and loss expenses, net of reinsurance |
|
|||||||||||||||||||||||||||||||
|
Commercial Property
(in thousands, except for claim counts)
|
|||||||||||||||||||||||||||||||||||||||||
| Incurred Loss and Allocated Loss Expenses, Net of Reinsurance |
As of
December 31, 2020 |
||||||||||||||||||||||||||||||||||||||||
| Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||||||||||||||||||
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||||
| 2011 | $ |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
| 2012 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
| 2013 |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| 2014 |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| 2015 |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
| 2016 |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
| 2017 |
|
|
|
|
(
|
|
|||||||||||||||||||||||||||||||||||
| 2018 |
|
|
|
(
|
|
||||||||||||||||||||||||||||||||||||
| 2019 |
|
|
(
|
|
|||||||||||||||||||||||||||||||||||||
| 2020 |
|
|
|
||||||||||||||||||||||||||||||||||||||
| Total |
|
||||||||||||||||||||||||||||||||||||||||
|
Commercial Property
(in thousands)
|
||||||||||||||||||||||||||||||||
| Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||
| Accident Year | Unaudited | |||||||||||||||||||||||||||||||
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||
| 2011 | $ |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| 2012 |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| 2013 |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
| 2014 |
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| 2015 |
|
|
|
|
|
|
||||||||||||||||||||||||||
| 2016 |
|
|
|
|
|
|||||||||||||||||||||||||||
| 2017 |
|
|
|
|
||||||||||||||||||||||||||||
| 2018 |
|
|
|
|||||||||||||||||||||||||||||
| 2019 |
|
|
||||||||||||||||||||||||||||||
| 2020 |
|
|||||||||||||||||||||||||||||||
| Total |
|
|||||||||||||||||||||||||||||||
| All outstanding liabilities before 2011, net of reinsurance |
|
|||||||||||||||||||||||||||||||
| Liabilities for loss and loss expenses, net of reinsurance |
|
|||||||||||||||||||||||||||||||
|
Personal Automobile
(in thousands, except for claim counts)
|
|||||||||||||||||||||||||||||||||||||||||
| Incurred Loss and Allocated Loss Expenses, Net of Reinsurance |
As of
December 31, 2020 |
||||||||||||||||||||||||||||||||||||||||
| Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||||||||||||||||||
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||||
| 2011 | $ |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
| 2012 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
| 2013 |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| 2014 |
|
|
|
|
|
|
|
(
|
|
||||||||||||||||||||||||||||||||
| 2015 |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
| 2016 |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
| 2017 |
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
| 2018 |
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
| 2019 |
|
|
|
|
|||||||||||||||||||||||||||||||||||||
| 2020 |
|
|
|
||||||||||||||||||||||||||||||||||||||
| Total |
|
||||||||||||||||||||||||||||||||||||||||
|
Personal Automobile
(in thousands)
|
||||||||||||||||||||||||||||||||
| Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||
| Accident Year | Unaudited | |||||||||||||||||||||||||||||||
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||
| 2011 | $ |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| 2012 |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| 2013 |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
| 2014 |
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| 2015 |
|
|
|
|
|
|
||||||||||||||||||||||||||
| 2016 |
|
|
|
|
|
|||||||||||||||||||||||||||
| 2017 |
|
|
|
|
||||||||||||||||||||||||||||
| 2018 |
|
|
|
|||||||||||||||||||||||||||||
| 2019 |
|
|
||||||||||||||||||||||||||||||
| 2020 |
|
|||||||||||||||||||||||||||||||
| Total |
|
|||||||||||||||||||||||||||||||
| All outstanding liabilities before 2011, net of reinsurance |
|
|||||||||||||||||||||||||||||||
| Liabilities for loss and loss expenses, net of reinsurance |
|
|||||||||||||||||||||||||||||||
|
Homeowners
(in thousands, except for claim counts)
|
|||||||||||||||||||||||||||||||||||||||||
| Incurred Loss and Allocated Loss Expenses, Net of Reinsurance |
As of
December 31, 2020 |
||||||||||||||||||||||||||||||||||||||||
| Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||||||||||||||||||
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||||
| 2011 | $ |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||
| 2012 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
| 2013 |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| 2014 |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| 2015 |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
| 2016 |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
| 2017 |
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
| 2018 |
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
| 2019 |
|
|
|
|
|||||||||||||||||||||||||||||||||||||
| 2020 |
|
|
|
||||||||||||||||||||||||||||||||||||||
| Total |
|
||||||||||||||||||||||||||||||||||||||||
|
Homeowners
(in thousands)
|
||||||||||||||||||||||||||||||||
| Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||
| Accident Year | Unaudited | |||||||||||||||||||||||||||||||
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||
| 2011 | $ |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| 2012 |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| 2013 |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
| 2014 |
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| 2015 |
|
|
|
|
|
|
||||||||||||||||||||||||||
| 2016 |
|
|
|
|
|
|||||||||||||||||||||||||||
| 2017 |
|
|
|
|
||||||||||||||||||||||||||||
| 2018 |
|
|
|
|||||||||||||||||||||||||||||
| 2019 |
|
|
||||||||||||||||||||||||||||||
| 2020 |
|
|||||||||||||||||||||||||||||||
| Total |
|
|||||||||||||||||||||||||||||||
| All outstanding liabilities before 2011, net of reinsurance |
|
|||||||||||||||||||||||||||||||
| Liabilities for loss and loss expenses, net of reinsurance |
|
|||||||||||||||||||||||||||||||
|
E&S Casualty Lines
(in thousands, except for claim counts)
|
|||||||||||||||||||||||||||||||||||||||||
| Incurred Loss and Allocated Loss Expenses, Net of Reinsurance |
As of
December 31, 2020 |
||||||||||||||||||||||||||||||||||||||||
| Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||||||||||||||||||
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||||||||||||||||||
| 2011 | $ |
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
| 2012 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
| 2013 |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
| 2014 |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
| 2015 |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
| 2016 |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
| 2017 |
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
| 2018 |
|
|
|
|
|
||||||||||||||||||||||||||||||||||||
| 2019 |
|
|
|
|
|||||||||||||||||||||||||||||||||||||
| 2020 |
|
|
|
||||||||||||||||||||||||||||||||||||||
| Total |
|
||||||||||||||||||||||||||||||||||||||||
|
E&S Casualty Lines
(in thousands)
|
||||||||||||||||||||||||||||||||
| Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | ||||||||||||||||||||||||||||||||
|
Accident
Year |
Unaudited | |||||||||||||||||||||||||||||||
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||||||||||
| 2011 | $ |
|
$ |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| 2012 |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| 2013 |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
| 2014 |
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| 2015 |
|
|
|
|
|
|
||||||||||||||||||||||||||
| 2016 |
|
|
|
|
|
|||||||||||||||||||||||||||
| 2017 |
|
|
|
|
||||||||||||||||||||||||||||
| 2018 |
|
|
|
|||||||||||||||||||||||||||||
| 2019 |
|
|
||||||||||||||||||||||||||||||
| 2020 |
|
|||||||||||||||||||||||||||||||
| Total |
|
|||||||||||||||||||||||||||||||
| All outstanding liabilities before 2011, net of reinsurance |
|
|||||||||||||||||||||||||||||||
| Liabilities for loss and loss expenses, net of reinsurance |
|
|||||||||||||||||||||||||||||||
| (in thousands) | December 31, 2020 | ||||
| Net outstanding liabilities: | |||||
| Standard Commercial Lines | |||||
| General liability | $ |
|
|||
| Workers compensation |
|
||||
| Commercial automobile |
|
||||
| Businessowners' policies |
|
||||
| Commercial property |
|
||||
| Other Standard Commercial Lines |
|
||||
| Total Standard Commercial Lines net outstanding liabilities |
|
||||
| Standard Personal Lines | |||||
| Personal automobile |
|
||||
| Homeowners |
|
||||
| Other Standard Personal Lines |
|
||||
| Total Standard Personal Lines net outstanding liabilities |
|
||||
| E&S Lines | |||||
| Casualty lines |
|
||||
| Property lines |
|
||||
| Total E&S Lines net outstanding liabilities |
|
||||
| Total liabilities for unpaid loss and loss expenses, net of reinsurance |
|
||||
| Reinsurance recoverable on unpaid claims: | |||||
| Standard Commercial Lines | |||||
| General liability |
|
||||
| Workers compensation |
|
||||
| Commercial automobile |
|
||||
| Businessowners' policies |
|
||||
| Commercial property |
|
||||
| Other Standard Commercial Lines |
|
||||
| Total Standard Commercial Lines reinsurance recoverable on unpaid loss |
|
||||
| Standard Personal Lines | |||||
| Personal automobile |
|
||||
| Homeowners |
|
||||
| Other Standard Personal Lines |
|
||||
| Total Standard Personal Lines reinsurance recoverable on unpaid loss |
|
||||
| E&S Lines | |||||
| Casualty lines |
|
||||
| Property lines |
|
||||
| Total E&S Lines reinsurance recoverable on unpaid loss |
|
||||
| Total reinsurance recoverable on unpaid loss |
|
||||
| Unallocated loss expenses |
|
||||
| Total gross liability for unpaid loss and loss expenses | $ |
|
|||
| Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | ||||||||||||||||||||||||||||||||
| Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | ||||||||||||||||||||||
| General liability |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Workers compensation |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Commercial automobile |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Businessowners’ policies |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Commercial property |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Personal automobile |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Homeowners |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| E&S Lines - casualty |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Outstanding Debt | 2020 | Carry Value | |||||||||||||||||||||||||||||||||||||||||||||
| Issuance Date | Maturity Date | Interest Rate | Original Amount | Unamortized Issuance Costs | Debt Discount | December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
| Description | |||||||||||||||||||||||||||||||||||||||||||||||
| Long term | |||||||||||||||||||||||||||||||||||||||||||||||
| (1) Senior Notes | 3/1/2019 | 3/1/2049 |
|
% |
|
$ |
|
|
|
|
|||||||||||||||||||||||||||||||||||||
| (2) FHLBI | 12/16/2016 | 12/16/2026 |
|
% |
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
| (3) FHLBNY | 8/15/2016 | 8/16/2021 |
|
% |
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
| (3) FHLBNY | 7/21/2016 | 7/21/2021 |
|
% |
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
| (4) Senior Notes | 11/3/2005 | 11/1/2035 |
|
% |
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
| (5) Senior Notes | 11/16/2004 | 11/15/2034 |
|
% |
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
| Finance lease obligations |
|
|
|||||||||||||||||||||||||||||||||||||||||||||
| Total long-term debt | $ |
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Required as of | Actual as of | ||||||||||||||||
| December 31, 2020 | December 31, 2020 | ||||||||||||||||
|
Consolidated net worth
1
|
Not less than |
$
|
$
|
||||||||||||||
|
Debt to total capitalization ratio
1
|
Not to exceed |
|
|
||||||||||||||
| Revenue by Segment | Years ended December 31, | |||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
| Standard Commercial Lines: | ||||||||||||||||||||
| Net premiums earned: | ||||||||||||||||||||
| Commercial automobile | $ |
|
|
|
||||||||||||||||
| Workers compensation |
|
|
|
|||||||||||||||||
| General liability |
|
|
|
|||||||||||||||||
| Commercial property |
|
|
|
|||||||||||||||||
| Businessowners’ policies |
|
|
|
|||||||||||||||||
| Bonds |
|
|
|
|||||||||||||||||
| Other |
|
|
|
|||||||||||||||||
| Miscellaneous income |
|
|
|
|||||||||||||||||
| Total Standard Commercial Lines revenue |
|
|
|
|||||||||||||||||
| Standard Personal Lines: | ||||||||||||||||||||
| Net premiums earned: | ||||||||||||||||||||
| Personal automobile |
|
|
|
|||||||||||||||||
| Homeowners |
|
|
|
|||||||||||||||||
| Other |
|
|
|
|||||||||||||||||
| Miscellaneous income |
|
|
|
|||||||||||||||||
| Total Standard Personal Lines revenue |
|
|
|
|||||||||||||||||
| E&S Lines: | ||||||||||||||||||||
| Net premiums earned: | ||||||||||||||||||||
| Casualty lines |
|
|
|
|||||||||||||||||
| Property lines |
|
|
|
|||||||||||||||||
| Miscellaneous income |
|
|
|
|||||||||||||||||
| Total E&S Lines revenue |
|
|
|
|||||||||||||||||
| Investments: | ||||||||||||||||||||
| Net investment income |
|
|
|
|||||||||||||||||
| Net realized and unrealized investment (losses) gains |
(
|
|
(
|
|||||||||||||||||
| Total Investments revenues |
|
|
|
|||||||||||||||||
| Total revenues | $ |
|
|
|
||||||||||||||||
| Income Before and After Federal Income Tax | Years ended December 31, | |||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
| Standard Commercial Lines: | ||||||||||||||||||||
| Underwriting gain, before federal income tax | $ |
|
|
|
||||||||||||||||
| Underwriting gain, after federal income tax |
|
|
|
|||||||||||||||||
| Combined ratio |
|
% |
|
% |
|
% | ||||||||||||||
| ROE contribution |
|
% |
|
|
||||||||||||||||
| Standard Personal Lines: | ||||||||||||||||||||
| Underwriting (loss) gain, before federal income tax |
(
|
|
|
|||||||||||||||||
| Underwriting (loss) gain, after federal income tax |
(
|
|
|
|||||||||||||||||
| Combined ratio |
|
% |
|
% |
|
% | ||||||||||||||
| ROE contribution |
(
|
% |
|
|
||||||||||||||||
| E&S Lines: | ||||||||||||||||||||
| Underwriting gain (loss), before federal income tax |
|
|
(
|
|||||||||||||||||
| Underwriting gain (loss), after federal income tax |
|
|
(
|
|||||||||||||||||
| Combined ratio |
|
% |
|
% |
|
% | ||||||||||||||
| ROE contribution |
|
% |
|
|
||||||||||||||||
| Investments: | ||||||||||||||||||||
| Net investment income | $ |
|
|
|
||||||||||||||||
| Net realized and unrealized investment (losses) gains |
(
|
|
(
|
|||||||||||||||||
| Total investment segment income, before federal income tax |
|
|
|
|||||||||||||||||
| Tax on investment segment income |
|
|
|
|||||||||||||||||
| Total investment segment income, after federal income tax | $ |
|
|
|
||||||||||||||||
| ROE contribution of after-tax net investment income |
|
% |
|
|
||||||||||||||||
| Reconciliation of Segment Results to Income Before Federal Income Tax | Years ended December 31, | |||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
| Underwriting gain (loss) | ||||||||||||||||||||
| Standard Commercial Lines | $ |
|
|
|
||||||||||||||||
| Standard Personal Lines |
(
|
|
|
|||||||||||||||||
| E&S Lines |
|
|
(
|
|||||||||||||||||
| Investment income |
|
|
|
|||||||||||||||||
| Total all segments |
|
|
|
|||||||||||||||||
| Interest expense |
(
|
(
|
(
|
|||||||||||||||||
| Corporate expenses |
(
|
(
|
(
|
|||||||||||||||||
| Income, before federal income tax | $ |
|
|
|
||||||||||||||||
| 2020 | Income | Shares | Per Share | |||||||||||||||||
| ($ in thousands, except per share amounts) | (Numerator) | (Denominator) | Amount | |||||||||||||||||
| Basic EPS: | ||||||||||||||||||||
| Net income available to common stockholders | $ |
|
|
$ |
|
|||||||||||||||
| Effect of dilutive securities: | ||||||||||||||||||||
| Stock compensation plans | — |
|
||||||||||||||||||
| Diluted EPS: | ||||||||||||||||||||
| Net income available to common stockholders | $ |
|
|
$ |
|
|||||||||||||||
| 2019 | Income | Shares | Per Share | |||||||||||||||||
| ($ in thousands, except per share amounts) | (Numerator) | (Denominator) | Amount | |||||||||||||||||
| Basic EPS: | ||||||||||||||||||||
| Net income available to common stockholders | $ |
|
|
$ |
|
|||||||||||||||
| Effect of dilutive securities: | ||||||||||||||||||||
| Stock compensation plans | — |
|
||||||||||||||||||
| Diluted EPS: | ||||||||||||||||||||
| Net income available to common stockholders | $ |
|
|
$ |
|
|||||||||||||||
| 2018 | Income | Shares | Per Share | |||||||||||||||||
| ($ in thousands, except per share amounts) | (Numerator) | (Denominator) | Amount | |||||||||||||||||
| Basic EPS: | ||||||||||||||||||||
| Net income available to common stockholders | $ |
|
|
$ |
|
|||||||||||||||
| Effect of dilutive securities: | ||||||||||||||||||||
| Stock compensation plans | — |
|
||||||||||||||||||
| Diluted EPS: | ||||||||||||||||||||
| Net income available to common stockholders | $ |
|
|
$ |
|
|||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
| Tax at statutory rate | $ |
|
|
|
||||||||||||||||
| Tax-advantaged interest |
(
|
(
|
(
|
|||||||||||||||||
| Dividends received deduction |
(
|
(
|
(
|
|||||||||||||||||
| Executive compensation |
|
|
|
|||||||||||||||||
| Stock-based compensation |
(
|
(
|
(
|
|||||||||||||||||
| Other |
(
|
(
|
(
|
|||||||||||||||||
| Federal income tax expense | $ |
|
|
|
||||||||||||||||
| ($ in thousands) | 2020 | 2019 | ||||||||||||
| Deferred tax assets: | ||||||||||||||
| Net loss reserve discounting | $ |
|
|
|||||||||||
| Net unearned premiums |
|
|
||||||||||||
| Employee benefits |
|
|
||||||||||||
| Long-term incentive compensation plans |
|
|
||||||||||||
| Temporary investment write-downs |
|
|
||||||||||||
| Other |
|
|
||||||||||||
| Total deferred tax assets |
|
|
||||||||||||
| Deferred tax liabilities: | ||||||||||||||
| Deferred policy acquisition costs |
|
|
||||||||||||
| Unrealized gains on investment securities |
|
|
||||||||||||
| Other investment-related items, net |
|
|
||||||||||||
| Accelerated depreciation and amortization |
|
|
||||||||||||
| Total deferred tax liabilities |
|
|
||||||||||||
| Net deferred federal income tax (liability) asset | $ |
(
|
|
|||||||||||
| December 31, | Pension Plan | |||||||||||||
| ($ in thousands) | 2020 | 2019 | ||||||||||||
| Change in Benefit Obligation: | ||||||||||||||
| Benefit obligation, beginning of year | $ |
|
|
|||||||||||
| Interest cost |
|
|
||||||||||||
| Actuarial losses |
|
|
||||||||||||
| Benefits paid |
(
|
(
|
||||||||||||
| Benefit obligation, end of year | $ |
|
|
|||||||||||
| Change in Fair Value of Assets: | ||||||||||||||
| Fair value of assets, beginning of year | $ |
|
|
|||||||||||
| Actual return on plan assets, net of expenses |
|
|
||||||||||||
| Contributions by the employer to funded plans |
|
|
||||||||||||
| Benefits paid |
(
|
(
|
||||||||||||
| Fair value of assets, end of year | $ |
|
|
|||||||||||
| Funded status | $ |
|
(
|
|||||||||||
| Amounts Recognized in the Consolidated Balance Sheet: | ||||||||||||||
| Assets | $ |
|
|
|||||||||||
| Liabilities |
|
(
|
||||||||||||
| Net pension assets (liabilities), end of year | $ |
|
(
|
|||||||||||
| Amounts Recognized in AOCI: | ||||||||||||||
| Net actuarial loss | $ |
|
|
|||||||||||
| Other Information as of December 31: | ||||||||||||||
| Accumulated benefit obligation | $ |
|
|
|||||||||||
| Weighted-Average Liability Assumptions as of December 31: | ||||||||||||||
| Discount rate |
|
% |
|
|||||||||||
| Pension Plan | ||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
| Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income: | ||||||||||||||||||||
| Net Periodic Benefit Cost (Benefit): | ||||||||||||||||||||
| Interest cost | $ |
|
|
|
||||||||||||||||
| Expected return on plan assets |
(
|
(
|
(
|
|||||||||||||||||
| Amortization of unrecognized actuarial loss |
|
|
|
|||||||||||||||||
|
Total net periodic pension cost (benefit)
1
|
$ |
(
|
(
|
(
|
||||||||||||||||
| Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | ||||||||||||||||||||
| Net actuarial (gain) loss | $ |
(
|
|
|
||||||||||||||||
| Reversal of amortization of net actuarial loss |
(
|
(
|
(
|
|||||||||||||||||
| Total recognized in other comprehensive income | $ |
(
|
|
|
||||||||||||||||
| Total recognized in net periodic benefit cost and other comprehensive income | $ |
(
|
|
|
||||||||||||||||
| Pension Plan | ||||||||||||||||||||
| 2020 | 2019 | 2018 | ||||||||||||||||||
| Weighted-Average Expense Assumptions for the years ended December 31: | ||||||||||||||||||||
| Discount rate |
|
% |
|
|
||||||||||||||||
| Expected return on plan assets |
|
|
|
|||||||||||||||||
| 2020 | 2019 | ||||||||||||||||||||||
| Target Percentage | Actual Percentage | Actual Percentage | |||||||||||||||||||||
| Minimum | Maximum | ||||||||||||||||||||||
|
Return seeking assets
1
|
|
% |
|
|
% |
|
% | ||||||||||||||||
| Liability hedging assets |
|
% |
|
|
% |
|
% | ||||||||||||||||
| Short-term investments |
|
|
|
% |
|
% | |||||||||||||||||
| Total | 100 | % |
|
% |
|
% |
|
% | |||||||||||||||
| December 31, 2020 | Fair Value Measurements at 12/31/20 Using | |||||||||||||||||||||||||
| ($ in thousands) | Assets Measured at Fair Value At 12/31/20 |
Quoted Prices in Active Markets for Identical Assets/ Liabilities
(Level 1) |
Significant Other Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
||||||||||||||||||||||
| Description | ||||||||||||||||||||||||||
| Return seeking assets: | ||||||||||||||||||||||||||
| Equities: | ||||||||||||||||||||||||||
| Global equity | $ |
|
|
|
|
|||||||||||||||||||||
| Diversified credit |
|
|
|
|
||||||||||||||||||||||
| Real assets |
|
|
|
|
||||||||||||||||||||||
| Total equities |
|
|
|
|
||||||||||||||||||||||
|
Limited partnerships (at net asset value)
1
:
|
||||||||||||||||||||||||||
| Real assets |
|
|
|
|
||||||||||||||||||||||
| Private equity |
|
|
|
|
||||||||||||||||||||||
| Private credit |
|
|
|
|
||||||||||||||||||||||
| Total limited partnerships |
|
|
|
|
||||||||||||||||||||||
| Total return seeking assets |
|
|
|
|
||||||||||||||||||||||
| Liability hedging assets: | ||||||||||||||||||||||||||
| Fixed income |
|
|
|
|
||||||||||||||||||||||
| U.S. Treasury overlay |
|
|
|
|
||||||||||||||||||||||
| Total liability hedging assets |
|
|
|
|
||||||||||||||||||||||
| Cash and short-term investments: | ||||||||||||||||||||||||||
| Short-term investments |
|
|
|
|
||||||||||||||||||||||
| Deposit administration contracts |
|
|
|
|
||||||||||||||||||||||
| Total cash and short-term investments |
|
|
|
|
||||||||||||||||||||||
| Total invested assets | $ |
|
|
|
|
|||||||||||||||||||||
| December 31, 2019 | Fair Value Measurements at 12/31/19 Using | |||||||||||||||||||||||||
| ($ in thousands) | Assets Measured at Fair Value At 12/31/19 |
Quoted Prices in Active Markets for Identical Assets/ Liabilities
(Level 1) |
Significant Other Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
||||||||||||||||||||||
| Description | ||||||||||||||||||||||||||
| Return seeking assets: | ||||||||||||||||||||||||||
| Equities: | ||||||||||||||||||||||||||
| Global equity | $ |
|
$ |
|
|
|
||||||||||||||||||||
| Diversified credit |
|
|
|
|
||||||||||||||||||||||
| Real assets |
|
|
|
|
||||||||||||||||||||||
| Total equities |
|
|
|
|
||||||||||||||||||||||
|
Limited partnerships (at net asset value)
1
:
|
||||||||||||||||||||||||||
| Real assets |
|
|
|
|
||||||||||||||||||||||
| Private equity |
|
|
|
|
||||||||||||||||||||||
| Private credit |
|
|
|
|
||||||||||||||||||||||
| Total limited partnerships |
|
|
|
|
||||||||||||||||||||||
| Total return seeking assets |
|
|
|
|
||||||||||||||||||||||
| Liability hedging assets: | ||||||||||||||||||||||||||
| Fixed income |
|
|
|
|
||||||||||||||||||||||
| U.S. Treasury overlay |
|
|
|
|
||||||||||||||||||||||
| Total liability hedging assets |
|
|
|
|
||||||||||||||||||||||
| Cash and short-term investments: | ||||||||||||||||||||||||||
| Short-term investments |
|
|
|
|
||||||||||||||||||||||
| Deposit administration contracts |
|
|
|
|
||||||||||||||||||||||
| Total cash and short-term investments |
|
|
|
|
||||||||||||||||||||||
| Total invested assets | $ |
|
|
|
|
|||||||||||||||||||||
| ($ in thousands) | Pension Plan | |||||||
| Benefits Expected to be Paid in Future | ||||||||
| Fiscal Years: | ||||||||
| 2021 | $ |
|
||||||
| 2022 |
|
|||||||
| 2023 |
|
|||||||
| 2024 |
|
|||||||
| 2025 |
|
|||||||
| 2026-2030 |
|
|||||||
| Plan | Approvals | ||||
| Stock Plan |
Approved effective as of May 1, 2014 by stockholders on April 23, 2014.
Most recently amended and restated plan was approved effective May 2, 2018 by stockholders on May 2, 2018. |
||||
| Cash Plan |
Approved effective April 1, 2005 by stockholders on April 27, 2005.
Most recently amended and restated plan was approved effective May 1, 2014 by stockholders on April 23, 2014. |
||||
| ESPP | Approved by stockholders on April 29, 2009 effective July 1, 2009. | ||||
| Agent Plan |
Approved by stockholders on April 26, 2006.
Most recently amended, effective November 1, 2020, by the Salary and Employee Benefits Committee of the Parent's Board on October 26, 2020. |
||||
| Plan | Types of Share-Based Payments Issued | ||||
| Stock Plan | Qualified and nonqualified stock options, stock appreciation rights ("SARs"), restricted stock, restricted stock units ("RSUs"), stock grants, and other awards valued in whole or in part by reference to the Parent's common stock. The maximum exercise period for an option grant under this plan is 10 years from the date of the grant. Dividend equivalent units ("DEUs") are earned during the vesting period on RSU grants. The DEUs are reinvested in the Parent's common stock at fair value on each dividend payment date. The requisite service period for grants to employees under this plan is the lesser of: (i) the stated vested date, which is typically three years from issuance; or (ii) the date the employee becomes eligible to retire. | ||||
| Cash Plan | Cash incentive units (“CIUs”). The initial dollar value of each CIU will be adjusted to reflect the percentage increase or decrease in the total shareholder return on the Parent's common stock over a specified performance period. In addition, for certain grants, the number of CIUs granted will be increased or decreased to reflect our performance on specified performance indicators compared to targeted peer companies. The requisite service period for grants under this plan is the lesser of: (i) the stated vested date, which is typically three years from issuance; or (ii) the date the employee becomes eligible to retire. | ||||
| ESPP | Enables employees to purchase shares of the Parent’s common stock. The purchase price is the lower of: (i) 85% of the closing market price at the time the option is granted; or (ii) 85% of the closing price at the time the option is exercised. Shares are generally issued on June 30 and December 31 of each year. | ||||
| Agent Plan | Quarterly offerings to purchase the Parent's common stock at a 10% discount with a one-year restricted period during which the shares purchased cannot be sold or transferred. Only our independent retail insurance agencies and wholesale general agencies, and certain eligible persons associated with the agencies, are eligible to participate in this plan. | ||||
| As of December 31, 2020 | Authorized | Available for Issuance | Awards Outstanding | ||||||||
| Stock Plan |
|
|
|
||||||||
| ESPP |
|
|
|
||||||||
| Agent Plan |
|
|
|
||||||||
| December 31, 2020 | Types of Share-Based Payments Issued | Reserve Shares |
Awards Outstanding
1
|
||||||||
| Plan | |||||||||||
| 2005 Omnibus Stock Plan ("2005 Stock Plan") | Qualified and nonqualified stock options, SARs, restricted stock, RSUs, phantom stock, stock bonuses, and other awards in such amounts and with such terms and conditions as it determined, subject to the provisions of the 2005 Stock Plan. The maximum exercise period for an option grant under this plan is 10 years from the date of the grant. DEUs are earned during the vesting period on RSU grants. The DEUs are reinvested in the Parent's common stock at fair value on each dividend payment date. |
|
|
||||||||
| Parent's Stock Compensation Plan for Non-employee Directors ("Directors Stock Compensation Plan") | Directors could elect to receive a portion of their annual compensation in shares of the Parent's common stock. |
|
|
||||||||
|
Number
of Shares |
Weighted
Average Grant Date Fair Value |
|||||||||||||
| Unvested RSU awards at December 31, 2019 |
|
$ |
|
|||||||||||
| Granted in 2020 |
|
|
||||||||||||
| Vested in 2020 |
(
|
|
||||||||||||
| Forfeited in 2020 |
(
|
|
||||||||||||
| Unvested RSU awards at December 31, 2020 |
|
$ |
|
|||||||||||
|
Number
of Shares |
Weighted
Average Exercise Price |
Weighted
Average Remaining Contractual Life in Years |
Aggregate
Intrinsic Value ($ in thousands) |
|||||||||||||||||||||||
| Outstanding at December 31, 2019 |
|
$ |
|
|||||||||||||||||||||||
| Granted in 2020 |
|
|
||||||||||||||||||||||||
| Exercised in 2020 |
|
|
||||||||||||||||||||||||
| Forfeited or expired in 2020 |
|
|
||||||||||||||||||||||||
| Outstanding at December 31, 2020 |
|
$ |
|
|
$ |
|
||||||||||||||||||||
| Exercisable at December 31, 2020 |
|
$ |
|
|
$ |
|
||||||||||||||||||||
| 2020 | 2019 | 2018 | |||||||||
| ESPP Issuances |
|
|
|
||||||||
| Agent Plan Issuances |
|
|
|
||||||||
| ESPP | ||||||||||||||||||||
| 2020 | 2019 | 2018 | ||||||||||||||||||
| Risk-free interest rate |
|
% |
|
|
||||||||||||||||
| Expected term |
|
|
|
|||||||||||||||||
| Dividend yield |
|
% |
|
|
||||||||||||||||
| Expected volatility |
|
% |
|
|
||||||||||||||||
| 2020 | 2019 | 2018 | ||||||||||||||||||
| RSUs | $ |
|
|
|
||||||||||||||||
| ESPP: | ||||||||||||||||||||
| Six month option |
|
|
|
|||||||||||||||||
| Discount of grant date market value |
|
|
|
|||||||||||||||||
| Total ESPP |
|
|
|
|||||||||||||||||
| Agent Plan: | ||||||||||||||||||||
| Discount of grant date market value |
|
|
|
|||||||||||||||||
| ($ in millions) | 2020 | 2019 | 2018 | |||||||||||||||||
| Share-based compensation expense, pre-tax | $ |
|
|
|
||||||||||||||||
| Income tax benefit, including the benefit related to stock grants that vested during the year |
(
|
(
|
(
|
|||||||||||||||||
| Share-based compensation expense, after-tax | $ |
|
|
|
||||||||||||||||
| ($ in thousands) | 2020 | 2019 | ||||||||||||
| Operating lease cost, included in Other insurance expenses on the Consolidated Statements of Income | $ |
|
|
|||||||||||
| Finance lease cost: | ||||||||||||||
| Amortization of assets, included in Other insurance expenses on the Consolidated Statements of Income |
|
|
||||||||||||
| Interest on lease liabilities, included in Interest expense on the Consolidated Statements of Income |
|
|
||||||||||||
| Total finance lease cost |
|
|
||||||||||||
| Variable lease cost, included in Other insurance expenses on the Consolidated Statements of Income |
|
|
||||||||||||
| Short-term lease cost, included in Other insurance expenses on the Consolidated Statements of Income | $ |
|
|
|||||||||||
| December 31, 2020 | December 31, 2019 | |||||||||||||
| Weighted-average remaining lease term | ||||||||||||||
| Operating leases |
|
|
years | |||||||||||
| Finance leases |
|
|
||||||||||||
| Weighted-average discount rate | ||||||||||||||
| Operating leases |
|
|
% | |||||||||||
| Finance leases |
|
|
||||||||||||
| ($ in thousands) | December 31, 2020 | December 31, 2019 | |||||||||
| Operating leases | |||||||||||
| Other assets | $ |
|
|
||||||||
| Other liabilities |
|
|
|||||||||
| Finance leases | |||||||||||
| Property and equipment - at cost, net of accumulated depreciation and amortization |
|
|
|||||||||
| Long-term debt | $ |
|
|
||||||||
| ($ in thousands) | Finance Leases | Operating Leases | Total | |||||||||||||||||
| Year ended December 31, | ||||||||||||||||||||
| 2021 | $ |
|
|
|
||||||||||||||||
| 2022 |
|
|
|
|||||||||||||||||
| 2023 |
|
|
|
|||||||||||||||||
| 2024 |
|
|
|
|||||||||||||||||
| 2025 |
|
|
|
|||||||||||||||||
| Thereafter |
|
|
|
|||||||||||||||||
| Total lease payments |
|
|
|
|||||||||||||||||
| Less: imputed interest |
|
|
|
|||||||||||||||||
| Less: leases that have not yet commenced |
|
|
|
|||||||||||||||||
| Total lease liabilities | $ |
|
|
|
||||||||||||||||
| ($ in thousands) | Finance Leases | Operating Leases | Total | |||||||||||||||||
| Year ended December 31, | ||||||||||||||||||||
| 2020 | $ |
|
|
|
||||||||||||||||
| 2021 |
|
|
|
|||||||||||||||||
| 2022 |
|
|
|
|||||||||||||||||
| 2023 |
|
|
|
|||||||||||||||||
| 2024 |
|
|
|
|||||||||||||||||
| Thereafter |
|
|
|
|||||||||||||||||
| Total lease payments |
|
|
|
|||||||||||||||||
| Less: imputed interest |
|
|
|
|||||||||||||||||
| Less: leases that have not yet commenced |
|
|
|
|||||||||||||||||
| Total lease liabilities | $ |
|
|
|
||||||||||||||||
| ($ in millions) | Amount of Obligation | Year of Expiration of Obligation | ||||||||||||
| Alternative and other investments | $ |
|
2036 | |||||||||||
| Non-publicly traded collateralized loan obligations in our fixed income securities portfolio |
|
2030 | ||||||||||||
| Non-publicly traded common stock within our equity portfolio |
|
2021 | ||||||||||||
| Commercial mortgage loans |
|
Less than 1 year | ||||||||||||
| Total | $ |
|
||||||||||||
| State of Domicile | Unassigned Surplus | Statutory Surplus | Statutory Net Income | |||||||||||||||||||||||||||||||||||||||||||||||
| ($ in millions) | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||
| SICA | New Jersey | $ |
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Selective Way Insurance Company ("SWIC") | New Jersey |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| SICSC | Indiana |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| SICSE | Indiana |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| SICNY | New York |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Selective Insurance Company of New England ("SICNE") | New Jersey |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Selective Auto Insurance Company of New Jersey ("SAICNJ") | New Jersey |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| MUSIC | New Jersey |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Selective Casualty Insurance Company ("SCIC") | New Jersey |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Selective Fire and Casualty Insurance Company ("SFCIC") | New Jersey |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Total | $ |
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Dividends | Twelve Months ended December 31, 2020 | 2021 | ||||||||||||||||||
| ($ in millions) | State of Domicile | Ordinary Dividends Paid | Maximum Ordinary Dividends | |||||||||||||||||
| SICA | New Jersey | $ |
|
$ |
|
|||||||||||||||
| SWIC | New Jersey |
|
|
|||||||||||||||||
| SICSC | Indiana |
|
|
|||||||||||||||||
| SICSE | Indiana |
|
|
|||||||||||||||||
| SICNY | New York |
|
|
|||||||||||||||||
| SICNE | New Jersey |
|
|
|||||||||||||||||
| SAICNJ | New Jersey |
|
|
|||||||||||||||||
| MUSIC | New Jersey |
|
|
|||||||||||||||||
| SCIC | New Jersey |
|
|
|||||||||||||||||
| SFCIC | New Jersey |
|
|
|||||||||||||||||
| Total | $ |
|
$ |
|
||||||||||||||||
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||||||||||||||||||||||||||||
| (unaudited, $ in thousands, except per share data) | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||
| Net premiums earned | $ |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Net investment income earned |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Net realized and unrealized (losses) gains |
(
|
|
|
|
|
(
|
|
(
|
||||||||||||||||||||||||||||||||||||||||||
| Other income |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Total revenues |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Income before federal income taxes |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Net income |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Net income available to common stockholders |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Net income available to common stockholders per common share: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Diluted |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Form 10-K | |||||
| Page | |||||
| Consolidated Balance Sheets as of December 31, 2020 and 2019 | |||||
| Consolidated Statements of Income for the Years Ended December 31, 2020, 2019, and 2018 | |||||
| Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2020, 2019, and 2018 | |||||
| Consolidated Statements of Stockholders' Equity for the Years Ended December 31, 2020, 2019, and 2018 | |||||
| Consolidated Statements of Cash Flows for the Years Ended December 31, 2020, 2019, and 2018 | |||||
| Notes to Consolidated Financial Statements, December 31, 2020, 2019, and 2018 | |||||
| Form 10-K | ||||||||
| Page | ||||||||
| Schedule I | Summary of Investments – Other than Investments in Related Parties at December 31, 2020 | |||||||
| Schedule II | Condensed Financial Information of Registrant at December 31, 2020, 2019, and 2018 and for the Years Ended December 31, 2020, 2019, and 2018 | |||||||
| Schedule III | Supplementary Insurance Information for the Years Ended December 31, 2020, 2019, and 2018 | |||||||
| Schedule IV | Reinsurance for the Years Ended December 31, 2020, 2019, and 2018 | |||||||
| Schedule V | Allowance for Credit Losses on Premiums and Other Receivables for the Years Ended December 31, 2020, 2019, and 2018 | |||||||
| Types of investment | ||||||||||||||||||||
| ($ in thousands) | Amortized Cost or Cost | Fair Value | Carrying Amount | |||||||||||||||||
| Fixed income securities: | ||||||||||||||||||||
| Held-to-maturity: | ||||||||||||||||||||
| Obligations of states and political subdivisions | $ |
|
|
|
||||||||||||||||
| Public utilities |
|
|
|
|||||||||||||||||
| All other corporate securities |
|
|
|
|||||||||||||||||
| Total fixed income securities, held-to-maturity |
|
|
|
|||||||||||||||||
| Available-for-sale: | ||||||||||||||||||||
| U.S. government and government agencies |
|
|
|
|||||||||||||||||
| Foreign government |
|
|
|
|||||||||||||||||
| Obligations of states and political subdivisions |
|
|
|
|||||||||||||||||
| Public utilities |
|
|
|
|||||||||||||||||
| All other corporate securities |
|
|
|
|||||||||||||||||
| Collateralized loan obligation securities and other asset-backed securities |
|
|
|
|||||||||||||||||
| Residential mortgage-backed securities |
|
|
|
|||||||||||||||||
| Commercial mortgage-backed securities |
|
|
|
|||||||||||||||||
| Total fixed income securities, available-for-sale |
|
|
|
|||||||||||||||||
| Equity securities: | ||||||||||||||||||||
| Common stock: | ||||||||||||||||||||
| Banks, trusts and insurance companies |
|
|
|
|||||||||||||||||
| Industrial, miscellaneous and all other |
|
|
|
|||||||||||||||||
| Nonredeemable preferred stock |
|
|
|
|||||||||||||||||
| Total equity securities |
|
|
|
|||||||||||||||||
| Commercial mortgage loans |
|
|
||||||||||||||||||
| Short-term investments |
|
|
||||||||||||||||||
| Other investments |
|
|
||||||||||||||||||
| Total investments | $ |
|
|
|||||||||||||||||
| December 31, | ||||||||||||||
| ($ in thousands, except share amounts) | 2020 | 2019 | ||||||||||||
| Assets: | ||||||||||||||
|
Fixed income securities, available-for-sale - at fair value
(allowance for credit losses: $
|
$ |
|
|
|||||||||||
| Equity securities |
|
|
||||||||||||
| Short-term investments |
|
|
||||||||||||
| Other investments |
|
|
||||||||||||
| Cash |
|
|
||||||||||||
| Investment in subsidiaries |
|
|
||||||||||||
| Current federal income tax |
|
|
||||||||||||
| Deferred federal income tax |
|
|
||||||||||||
| Other assets |
|
|
||||||||||||
| Total assets | $ |
|
|
|||||||||||
| Liabilities: | ||||||||||||||
| Long-term debt | $ |
|
|
|||||||||||
| Intercompany notes payable |
|
|
||||||||||||
| Accrued long-term stock compensation |
|
|
||||||||||||
| Other liabilities |
|
|
||||||||||||
| Total liabilities | $ |
|
|
|||||||||||
| Stockholders’ Equity: | ||||||||||||||
|
Preferred stock of $
|
||||||||||||||
|
Authorized shares:
|
$ |
|
|
|||||||||||
|
Common stock of $
|
||||||||||||||
|
Authorized shares:
|
||||||||||||||
|
Issued:
|
|
|
||||||||||||
| Additional paid-in capital |
|
|
||||||||||||
| Retained earnings |
|
|
||||||||||||
| Accumulated other comprehensive income |
|
|
||||||||||||
|
Treasury stock – at cost (shares:
|
(
|
(
|
||||||||||||
| Total stockholders’ equity |
|
|
||||||||||||
| Total liabilities and stockholders’ equity | $ |
|
|
|||||||||||
| Year ended December 31, | ||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Dividends from subsidiaries | $ |
|
|
|
||||||||||||||||
| Net investment income earned |
|
|
|
|||||||||||||||||
| Net realized and unrealized investment gains (losses) |
|
|
(
|
|||||||||||||||||
| Total revenues |
|
|
|
|||||||||||||||||
| Expenses: | ||||||||||||||||||||
| Interest expense |
|
|
|
|||||||||||||||||
| Other expenses |
|
|
|
|||||||||||||||||
| Total expenses |
|
|
|
|||||||||||||||||
| Income before federal income tax |
|
|
|
|||||||||||||||||
| Federal income tax (benefit) expense: | ||||||||||||||||||||
| Current |
(
|
(
|
(
|
|||||||||||||||||
| Deferred |
|
|
|
|||||||||||||||||
| Total federal income tax benefit |
(
|
(
|
(
|
|||||||||||||||||
| Net income before equity in undistributed income of subsidiaries |
|
|
|
|||||||||||||||||
| Equity in undistributed income of subsidiaries, net of tax |
|
|
|
|||||||||||||||||
| Net income | $ |
|
|
|
||||||||||||||||
| Preferred stock dividends |
|
|
|
|||||||||||||||||
| Net income available to common stockholders | $ |
|
|
|
||||||||||||||||
| Year ended December 31, | ||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
| Operating Activities: | ||||||||||||||||||||
| Net income | $ |
|
|
|
||||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
| Equity in undistributed income of subsidiaries, net of tax |
(
|
(
|
(
|
|||||||||||||||||
| Stock-based compensation expense |
|
|
|
|||||||||||||||||
| Net realized and unrealized investment (gains) losses |
(
|
(
|
|
|||||||||||||||||
| Undistributed losses of equity method investments |
|
|
|
|||||||||||||||||
| Amortization – other |
|
|
|
|||||||||||||||||
| Changes in assets and liabilities: | ||||||||||||||||||||
| Decrease in accrued long-term stock compensation |
(
|
(
|
(
|
|||||||||||||||||
| Decrease in net federal income taxes |
|
|
|
|||||||||||||||||
| Increase in other assets |
(
|
(
|
(
|
|||||||||||||||||
| (Decrease) increase in other liabilities |
(
|
|
|
|||||||||||||||||
| Net cash provided by operating activities |
|
|
|
|||||||||||||||||
| Investing Activities: | ||||||||||||||||||||
| Purchase of fixed income securities, available-for-sale |
(
|
(
|
(
|
|||||||||||||||||
| Purchase of equity securities |
(
|
(
|
|
|||||||||||||||||
| Purchase of short-term investments |
(
|
(
|
(
|
|||||||||||||||||
| Purchase of other investments |
(
|
|
|
|||||||||||||||||
| Redemption and maturities of fixed income securities, available-for-sale |
|
|
|
|||||||||||||||||
| Sale of fixed income securities, available-for-sale |
|
|
|
|||||||||||||||||
| Sale of equity securities |
|
|
|
|||||||||||||||||
| Sale of short-term investments |
|
|
|
|||||||||||||||||
| Capital contribution to subsidiaries |
(
|
|
|
|||||||||||||||||
| Net cash used in investing activities |
(
|
(
|
(
|
|||||||||||||||||
| Financing Activities: | ||||||||||||||||||||
| Dividends to preferred stockholders |
|
|
|
|||||||||||||||||
| Dividends to common stockholders |
(
|
(
|
(
|
|||||||||||||||||
| Acquisition of treasury stock |
(
|
(
|
(
|
|||||||||||||||||
| Proceeds from borrowings |
|
|
|
|||||||||||||||||
| Repayment of borrowings |
(
|
(
|
|
|||||||||||||||||
| Net proceeds from stock purchase and compensation plans |
|
|
|
|||||||||||||||||
| Preferred stock issued, net of issuance costs |
|
|
|
|||||||||||||||||
| Principal payment on borrowings from subsidiaries |
(
|
(
|
(
|
|||||||||||||||||
| Net cash provided by (used in) financing activities |
|
|
(
|
|||||||||||||||||
| Net increase (decrease) in cash |
|
(
|
(
|
|||||||||||||||||
| Cash, beginning of year |
|
|
|
|||||||||||||||||
| Cash, end of year | $ |
|
|
|
||||||||||||||||
| ($ in thousands) |
Deferred
policy acquisition costs |
Reserve
for loss and loss expense |
Unearned premiums |
Net
premiums earned |
Net
investment income
1
|
Loss
and loss expense incurred |
Amortization
of deferred policy acquisition costs |
Other
operating expenses
2
|
Net
premiums written |
|||||||||||||||||||||||||||||||||||||||||||||||
| Standard Commercial Lines Segment | $ |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||
| Standard Personal Lines Segment |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
| E&S Lines Segment |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
| Investments Segment |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||
| Other insurance expenses | $ |
|
|||
| Other income |
(
|
||||
| Total | $ |
|
|||
| ($ in thousands) |
Deferred
policy acquisition costs |
Reserve
for loss and loss expense |
Unearned premiums |
Net
premiums earned |
Net
investment income
1
|
Loss
and loss expense incurred |
Amortization
of deferred policy acquisition costs |
Other
operating expenses
2
|
Net
premiums written |
|||||||||||||||||||||||||||||||||||||||||||||||
| Standard Commercial Lines Segment | $ |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||
| Standard Personal Lines Segment |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
| E&S Lines Segment |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
| Investments Segment |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||
| Other insurance expenses | $ |
|
|||
| Other income |
(
|
||||
| Total | $ |
|
|||
| ($ in thousands) |
Deferred
policy acquisition costs |
Reserve
for loss and loss expense |
Unearned premiums |
Net
premiums earned |
Net
investment income
1
|
Loss
and loss expense incurred |
Amortization
of deferred policy acquisition costs |
Other
operating expenses
2
|
Net
premiums written |
|||||||||||||||||||||||||||||||||||||||||||||||
| Standard Commercial Lines Segment | $ |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||
| Standard Personal Lines Segment |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
| E&S Lines Segment |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
| Investments Segment |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||
| Other insurance expenses | $ |
|
|||
| Other income |
(
|
||||
| Total | $ |
|
|||
| ($ thousands) | Direct Amount | Assumed from Other Companies | Ceded to Other Companies | Net Amount | % of Amount Assumed to Net | |||||||||||||||||||||||||||
| 2020 | ||||||||||||||||||||||||||||||||
| Premiums earned: | ||||||||||||||||||||||||||||||||
| Accident and health insurance | $ |
|
|
|
|
|
||||||||||||||||||||||||||
| Property and liability insurance |
|
|
|
|
|
|||||||||||||||||||||||||||
| Total premiums earned |
|
|
|
|
|
|||||||||||||||||||||||||||
| 2019 | ||||||||||||||||||||||||||||||||
| Premiums earned: | ||||||||||||||||||||||||||||||||
| Accident and health insurance | $ |
|
|
|
|
|
||||||||||||||||||||||||||
| Property and liability insurance |
|
|
|
|
|
% | ||||||||||||||||||||||||||
| Total premiums earned |
|
|
|
|
|
% | ||||||||||||||||||||||||||
| 2018 | ||||||||||||||||||||||||||||||||
| Premiums earned: | ||||||||||||||||||||||||||||||||
| Accident and health insurance | $ |
|
|
|
|
|
||||||||||||||||||||||||||
| Property and liability insurance |
|
|
|
|
|
% | ||||||||||||||||||||||||||
| Total premiums earned |
|
|
|
|
|
% | ||||||||||||||||||||||||||
| ($ in thousands) | 2020 | 2019 | 2018 | |||||||||||||||||
| Balance, January 1 | $ |
|
|
|
||||||||||||||||
|
Cumulative effect adjustment
1
|
(
|
|
|
|||||||||||||||||
| Balance at the beginning of the period, as adjusted |
|
|
|
|||||||||||||||||
| Additions |
|
|
|
|||||||||||||||||
| Deductions |
(
|
(
|
(
|
|||||||||||||||||
| Balance, December 31 | $ |
|
|
|
||||||||||||||||
| Exhibit | ||||||||
| Number | ||||||||
| Amended and Restated Certificate of Incorporation of Selective Insurance Group, Inc., filed May 4, 2010, as amended by Certificate of Correction thereto, dated August 17, 2020 and effective May 4, 2010 (incorporated by reference herein to Exhibit 3.1 of the Company’s Quarterly Report on Form 10-Q filed October 29, 2020, File No. 001-33067). | ||||||||
|
Certificate of Amendment of the Restated Certificate of Incorporation of Selective Insurance Group, Inc., with respect to the 4.60% Non-Cumulative Preferred Stock, Series B of Selective Insurance Group, Inc., filed with the State of New Jersey Department of Treasury and effective December 7, 2020 (incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement on Form 8-A filed December 8, 2020, File No. 001-33067).
|
||||||||
| By-Laws of Selective Insurance Group, Inc., effective July 29, 2015 (incorporated by reference herein to Exhibit 3.2 of the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, File No. 001-33067). | ||||||||
| Indenture, dated as of September 24, 2002, between Selective Insurance Group, Inc. and National City Bank, as Trustee, relating to the Company's 1.6155% Senior Convertible Notes due September 24, 2032 (incorporated by reference herein to Exhibit 4.1 of the Company's Registration Statement on Form S-3 filed November 26, 2002 File No. 333-101489). | ||||||||
| Indenture, dated as of November 16, 2004, between Selective Insurance Group, Inc. and Wachovia Bank, National Association, as Trustee, relating to the Company's 7.25% Senior Notes due 2034 (incorporated by reference herein to Exhibit 4.1 of the Company's Current Report on Form 8-K filed November 18, 2004, File No. 000-08641). | ||||||||
| Indenture, dated as of November 3, 2005, between Selective Insurance Group, Inc. and Wachovia Bank, National Association, as Trustee, relating to the Company’s 6.70% Senior Notes due 2035 (incorporated by reference herein to Exhibit 4.1 of the Company’s Current Report on Form 8-K filed November 9, 2005, File No. 000-08641). | ||||||||
| Registration Rights Agreement, dated as of November 16, 2004, between Selective Insurance Group, Inc. and Keefe, Bruyette & Woods, Inc. (incorporated by reference herein to Exhibit 4.2 of the Company’s Current Report on Form 8-K filed November 18, 2004, File No. 000-08641). | ||||||||
| Registration Rights Agreement, dated as of November 3, 2005, between Selective Insurance Group, Inc. and Keefe, Bruyette & Woods, Inc. (incorporated by reference herein to Exhibit 4.2 of the Company’s Current Report on Form 8-K filed November 9, 2005, File No. 000-08641). | ||||||||
| Indenture, dated as of February 8, 2013, between Selective Insurance Group, Inc. and U.S. Bank National Association, as Trustee (incorporated by reference herein to Exhibit 4.1 of the Company's Current Report on Form 8-K filed February 8, 2013, File No. 001-33067). | ||||||||
| Second Supplemental Indenture, dated as of March 1, 2019 between Selective Insurance Group, Inc. and U.S. Bank National Association, as Trustee, relating to the Company’s 5.375% Senior Notes due 2049 (incorporated by reference herein to Exhibit 4.1 of the Company’s Current Report on Form 8-K filed March 1, 2019 File No. 001-33067). | ||||||||
|
Deposit Agreement, dated as of December 9, 2020, among the Company and Equiniti Trust Company, acting as Depositary, Registrar and Transfer Agent, and the holders from time to time of the depositary receipts described therein (incorporated by reference herein to Exhibit 4.2 of the Company’s Current Report on Form 8-K filed December 9, 2020, File No. 001-33067).
|
||||||||
| Description of the Company's Securities Registered Under Section 12 of the Securities Exchange Act of 1934. | ||||||||
| Exhibit | ||||||||
| Number | ||||||||
| Selective Insurance Supplemental Pension Plan, As Amended and Restated Effective January 1, 2005 (incorporated by reference herein to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2008, File No. 001-33067). | ||||||||
| Amendment No. 1 to Selective Insurance Supplemental Pension Plan, As Amended and Restated Effective January 1, 2005 (incorporated by reference herein to Exhibit 10.1 of the Company's Current Report on Form 8-K filed March 25, 2013, File No. 001-33067). | ||||||||
| Amendment No. 2 to Selective Insurance Supplemental Pension Plan, As Amended and Restated Effective January 1, 2005 (incorporated by reference herein to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q filed May 5, 2020, File No. 001-33067). | ||||||||
| Selective Insurance Company of America Deferred Compensation Plan (2005), As Amended and Restated Effective as of January 1, 2010 (incorporated by reference herein to Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011, File No. 001-33067). | ||||||||
| Amendment No 1. to Selective Insurance Company of America Deferred Compensation Plan (2005) (incorporated by reference herein to Exhibit 10.2a of the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2011, File No. 001-33067). | ||||||||
| Amendment No. 2 to Selective Insurance Company of America Deferred Compensation Plan (2005), As Amended and Restated Effective as of January 1, 2010 (incorporated by reference herein to Exhibit 10.2 of the Company's Current Report on Form 8-K filed March 25, 2013, File No. 001-33067). | ||||||||
| Selective Insurance Group, Inc. 2014 Omnibus Stock Plan, effective May 1, 2014 (incorporated by reference herein to Appendix A-1 to the Company’s Definitive Proxy Statement for its 2014 Annual Meeting of Stockholders filed April 3, 2014, File No. 001-33067). | ||||||||
| Selective Insurance Group, Inc. 2014 Omnibus Stock Plan Director Stock Option Agreement (incorporated by reference herein to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. 001-33067). | ||||||||
| Selective Insurance Group, Inc. 2014 Omnibus Stock Plan Stock Option Agreement (incorporated by reference herein to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. 001-33067). | ||||||||
| Selective Insurance Group, Inc. 2014 Omnibus Stock Plan Service-Based Restricted Stock Agreement (incorporated by reference herein to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. 001-33067). | ||||||||
| Selective Insurance Group, Inc. 2014 Omnibus Stock Plan Performance-Based Restricted Stock Agreement (incorporated by reference herein to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. 001-33067). | ||||||||
| Selective Insurance Group, Inc. 2014 Omnibus Stock Plan Service-Based Restricted Stock Unit Agreement (incorporated by reference herein to Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. 001-33067). | ||||||||
| Selective Insurance Group, Inc. 2014 Omnibus Stock Plan Performance-Based Restricted Stock Unit Agreement (incorporated by reference herein to Exhibit 10.6 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. 001-33067). | ||||||||
| Selective Insurance Group, Inc. 2014 Omnibus Stock Plan Director Restricted Stock Unit Agreement (incorporated by reference herein to Exhibit 10.7 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. 001-33067). | ||||||||
| Exhibit | ||||||||
| Number | ||||||||
| Selective Insurance Group, Inc. 2005 Omnibus Stock Plan As Amended and Restated Effective as of May 1, 2010 (incorporated by reference herein to Appendix C of the Company’s Definitive Proxy Statement for its 2010 Annual Meeting of Stockholders filed March 25, 2010, File No. 001-33067). | ||||||||
| Selective Insurance Group, Inc. 2014 Omnibus Stock Plan as Amended and Restated Effective as of May 2, 2018 (incorporated by reference herein to Appendix A of the Company’s Definitive Proxy Statement filed March 26, 2018 for its 2018 Annual Meeting of Stockholders, File No. 001-33067). | ||||||||
| Selective Insurance Group, Inc. 2005 Omnibus Stock Plan Director Stock Option Agreement (incorporated by reference herein to Exhibit 10.9 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2005, File No. 000-08641). | ||||||||
| Selective Insurance Group, Inc. 2005 Omnibus Stock Plan Automatic Director Stock Option Agreement (incorporated by reference herein to Exhibit 2 of the Company’s Definitive Proxy Statement for its 2005 Annual Meeting of Stockholders filed April 6, 2005, File No. 000-08641). | ||||||||
| Selective Insurance Group, Inc. Non-Employee Directors’ Compensation and Deferral Plan, As Amended and Restated Effective as of January 1, 2017 (incorporated by reference herein to Exhibit 10.18 to the Company's Annual Report on Form 10-K for the year ended December 31, 2016, File No. 001-33067). | ||||||||
| 10.16+ (P) | Deferred Compensation Plan for Directors (incorporated by reference herein to Exhibit 10.5 to the Company’s Annual Report on Form 10-K for the year ended December 31, 1993, File No. 000-08641). | |||||||
| Selective Insurance Group, Inc. Employee Stock Purchase Plan (2009), amended and restated effective July 1, 2009 (incorporated by reference herein to Appendix A to the Company’s Definitive Proxy Statement for its 2009 Annual Meeting of Stockholders filed March 26, 2009, File No. 001-33067). | ||||||||
| Selective Insurance Group, Inc. Cash Incentive Plan As Amended and Restated as of May 1, 2014 (incorporated by reference herein to Appendix B to the Company’s Definitive Proxy Statement for its 2014 Annual Meeting of Stockholders filed March 24, 2014, File No. 001-33067). | ||||||||
| Selective Insurance Group, Inc. Cash Incentive Plan Service-Based Cash Incentive Unit Award Agreement (incorporated by reference herein to Exhibit 10.8 of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. 001-33067). | ||||||||
| Selective Insurance Group, Inc. Cash Incentive Plan Performance-Based Cash Incentive Unit Award Agreement (incorporated by reference herein to Exhibit 10.9 of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. 001-33067). | ||||||||
| Selective Insurance Group, Inc. Cash Incentive Plan Cash Incentive Unit Award Agreement (incorporated by reference herein to Exhibit 10.14c of the Company’s Annual Report on Form 10-K for the year ended December 31, 2007, File No. 001-33067). | ||||||||
| Selective Insurance Group, Inc. Cash Incentive Plan Cash Incentive Unit Award Agreement (incorporated by reference herein to Exhibit 10.14d of the Company’s Annual Report on Form 10-K for the year ended December 31, 2007, File No. 001-33067). | ||||||||
| Amended and Restated Selective Insurance Group, Inc. Stock Purchase Plan for Independent Insurance Agencies (2010), Amended and Restated as of November 1, 2020 (incorporated by reference herein to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed October 29, 2020, File No. 001-33067). | ||||||||
| Selective Insurance Group, Inc. Stock Option Plan for Directors (incorporated by reference herein to Exhibit B of the Company’s Definitive Proxy Statement for its 2000 Annual Meeting of Stockholders filed March 31, 2000, File No. 000-08641). | ||||||||
| Exhibit | ||||||||
| Number | ||||||||
| Amendment to the Selective Insurance Group, Inc. Stock Option Plan for Directors, as amended, effective as of July 26, 2006, (incorporated by reference herein to Exhibit 10.3 of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2006, File No. 000-08641). | ||||||||
| Selective Insurance Group, Inc. Stock Compensation Plan for Nonemployee Directors, (incorporated by reference herein to Exhibit A of the Company’s Definitive Proxy Statement for its 2000 Annual Meeting of Stockholders filed March 31, 2000, File No. 000-08641). | ||||||||
| Amendment to Selective Insurance Group, Inc. Stock Compensation Plan for Nonemployee Directors, as amended (incorporated by reference herein to Exhibit 10.22a of the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, File No. 001-33067). | ||||||||
|
Employment Agreement between Selective Insurance Company of America and Gregory E. Murphy, effective as of February 1, 2020 (incorporated by reference herein to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed November 1, 2019, File No. 001-33067).
|
||||||||
| Employment Agreement between Selective Insurance Company of America and John J. Marchioni, dated as of February 10, 2020 (incorporated by reference herein to Exhibit 10.32 of the Company’s Annual Report on Form 10-K filed February 12, 2020, File No. 001-33067). | ||||||||
| Employment Agreement between Selective Insurance Company of America and Mark A. Wilcox, dated as of October 28, 2016 (incorporated by reference herein to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed October 31, 2016, File No. 001-33067). | ||||||||
| Employment Agreement between Selective Insurance Company of America and Michael H. Lanza, dated as of March 2, 2020 (incorporated by reference herein to Exhibit 10.1 of the Company's Current Report on Form 8-K filed March 2, 2020, File No. 001-33067). | ||||||||
| Credit Agreement among Selective Insurance Group, Inc., the Lenders Named Therein and Bank of Montreal, Chicago Branch, as Administrative Agent, dated as of December 20, 2019 (incorporated by reference herein to Exhibit 10.34 of the Company’s Annual Report on Form 10-K filed February 12, 2020, File No. 001-33067). | ||||||||
| Form of Indemnification Agreement between Selective Insurance Group, Inc. and each of its directors and executive officers, as adopted on May 19, 2005 (incorporated by reference herein to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed May 20, 2005, File No. 000-08641). | ||||||||
| Selective Insurance Group, Inc. Non-Employee Directors’ Deferred Compensation Plan (incorporated by reference herein to Exhibit 10.27 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2009, File No. 001-33067). | ||||||||
| Amendment No. 1 to the Selective Insurance Group, Inc. Non-Employee Directors’ Deferred Compensation Plan (incorporated by reference herein to Exhibit 10.27a of the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, File No. 001-33067). | ||||||||
| Exhibit | ||||||||
| Number | ||||||||
| Subsidiaries of Selective Insurance Group, Inc. | ||||||||
| Consent of KPMG LLP. | ||||||||
| Power of Attorney of Ainar D. Aijala, Jr. | ||||||||
| Power of Attorney of Lisa Rojas Bacus. | ||||||||
| Power of Attorney of John C. Burville. | ||||||||
| Power of Attorney of Terrence W. Cavanaugh. | ||||||||
| Power of Attorney of Wole C. Coaxum. | ||||||||
| Power of Attorney of Robert Kelly Doherty. | ||||||||
| Power of Attorney of Thomas A. McCarthy. | ||||||||
| Power of Attorney of Stephen C. Mills. | ||||||||
| Power of Attorney of H. Elizabeth Mitchell. | ||||||||
| Power of Attorney of Michael J. Morrissey. | ||||||||
| Power of Attorney of Gregory E. Murphy. | ||||||||
| Power of Attorney of Cynthia S. Nicholson. | ||||||||
| Power of Attorney of William M. Rue. | ||||||||
| Power of Attorney of John S. Scheid. | ||||||||
| Power of Attorney of J. Brian Thebault. | ||||||||
| Power of Attorney of Philip H. Urban. | ||||||||
| Certification of Chief Executive Officer in accordance with Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||
| Certification of Chief Financial Officer in accordance with Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||
| Certification of Chief Executive Officer in accordance with Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||
| Certification of Chief Financial Officer in accordance with Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||
| Glossary of Terms. | ||||||||
| ** 101 | The following financial statements from the Company's Annual report on Form 10-K for the year ended December 31, 2020, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (II) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Stockholders' Equity, (v) Consolidated Statements of Cash Flows and (vi) Notes to Consolidated Financial Statements. | |||||||
| ** 104 | The cover page from the Company's Annual Report on Form 10-K for the year ended December 31, 2020, formatted in iXBRL | |||||||
| SELECTIVE INSURANCE GROUP, INC. | ||||||||
| By: /s/ John J. Marchioni | February 12, 2021 | |||||||
| John J. Marchioni | ||||||||
| President and Chief Executive Officer | ||||||||
| (principal executive officer) | ||||||||
| By: /s/ Mark A. Wilcox | February 12, 2021 | |||||||
| Mark A. Wilcox | ||||||||
| Executive Vice President and Chief Financial Officer | ||||||||
| (principal financial officer) | ||||||||
| By: /s/ Anthony D. Harnett | February 12, 2021 | |||||||
| Anthony D. Harnett | ||||||||
| Senior Vice President and Chief Accounting Officer | ||||||||
| (principal accounting officer) | ||||||||
| By: /s/ John J. Marchioni | February 12, 2021 | |||||||
| John J. Marchioni | ||||||||
| President and Chief Executive Officer | ||||||||
| * | February 12, 2021 | |||||||
| Ainar D. Aijala, Jr. | ||||||||
| Director | ||||||||
| * | February 12, 2021 | |||||||
| Lisa Rojas Bacus | ||||||||
| Director | ||||||||
| * | February 12, 2021 | |||||||
| John C. Burville | ||||||||
| Director | ||||||||
| * | February 12, 2021 | |||||||
| Terrence W. Cavanaugh | ||||||||
| Director | ||||||||
| * | February 12, 2021 | |||||||
| Wole C. Coaxum | ||||||||
| Director | ||||||||
| * | February 12, 2021 | |||||||
| Robert Kelly Doherty | ||||||||
| Director | ||||||||
| * | February 12, 2021 | |||||||
| Thomas A. McCarthy | ||||||||
| Director | ||||||||
| * | February 12, 2021 | |||||||
| Stephen C. Mills | ||||||||
| Director | ||||||||
| * | February 12, 2021 | |||||||
| H. Elizabeth Mitchell | ||||||||
| Director | ||||||||
| * | February 12, 2021 | |||||||
| Michael J. Morrissey | ||||||||
| Director | ||||||||
| * | February 12, 2021 | |||||||
| Gregory E. Murphy | ||||||||
| Non-Executive Chairperson of the Board | ||||||||
| * | February 12, 2021 | |||||||
| Cynthia S. Nicholson | ||||||||
| Director | ||||||||
| * | February 12, 2021 | |||||||
| William M. Rue | ||||||||
| Director | ||||||||
| * | February 12, 2021 | |||||||
| John S. Scheid | ||||||||
| Director | ||||||||
| * | February 12, 2021 | |||||||
| J. Brian Thebault | ||||||||
| Director | ||||||||
| * | February 12, 2021 | |||||||
| Philip H. Urban | ||||||||
| Director | ||||||||
| * By: /s/ Michael H. Lanza | February 12, 2021 | |||||||
| Michael H. Lanza | ||||||||
| Attorney-in-fact | ||||||||